Against the Grain: Food Shortages in the U.S.?

It’s amazing how a crisis in one commodity market can so significantly affect another commodity market. Take the burgeoning shortages of grains: corn, rice and wheat. Much of the problem can be traced back to skyrocketing oil prices. Call it the “chaos theory” of energy…if a butterfly flaps its wings in the oil fields of Saudi Arabia, it impacts corn production in the U.S. heartland…

Commentary By: Richard Blair

From the “law of unintended consequences” file…

There’s a perfect storm brewing in the food supply chain, and it centers on grain products. A portion of the issue (skyrocketing corn prices and lack of availability) is being blamed on 1) corn being diverted into the more lucrative ethanol production market rather than into the food consumption chain, and 2)

Friday, August 5th, 2011 by Richard Blair |

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