Iowa's Terms of Trade Improve
By Arnold Kling
Wheat prices alone have risen 92% in the past year, and yesterday closed at US$9.45 a bushel on the Chicago Board of Trade.
At the centre of the imminent food catastrophe is corn – the main staple of the ethanol industry. The price of corn has risen about 44% over the past 15 months, closing at US$4.66 a bushel on the CBOT yesterday – its best finish since June 1996.
…Biofuels are expected to eat up about a third of America’s grain harvest in 2007.
Our energy policies are working. Robert Zubrin thinks that with more of the same, we can have what he calls “victory.”
Thanks to Tim Haab for the pointer.