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Since July 2006, the price of corn has risen from $2.85 per bushel to $4.093 per bushel today on the Chicago Board of Trade. Why? Fuel ethanol. This is putting pressure on the price of one of our favorite beverages: milk!
That's right, milk, which experts say could top $4.50 a gallon in the Midwest (where the cows are), $5 in other parts of the country.
Before you ask, increases in bourbon prices have very little to do with the price of corn. They mostly are caused by demand outstripping supply.
Before you ask, increases in bourbon prices have very little to do with the price of corn.
I've been wondering for the past few weeks about how the increasing price of corn may influence the bourbon market. I hope your right.
Not a big fan of milk, but think of what that's gonna do to cheese prices! ouch!
Milk, cream, eggs, cheese, and meat.
As the price of corn and beans go up so does the cost of animal feed.
The most painful is of course meat prices. I only go through a gallon and a half of milk a week (I'm the only one who drinks it).
rising corn prices aren't necessarily a win win for a lot of farmers. (those with livestock) Also, I know of several farmers who, before grain prices started to shoot up, bought grain bins from Carrgill at much cheaper prices than they could have bought them from other millwright/bin builders. But now they are locked in at whatever the market price for corn/beans was when they made the deal. They can only sell the grain that is stored in those bins to Carrgill. (for the first one or two years; whatever deal was made)
That was my first thought, that if it's affecting milk this much now, it's going to affect meat, especially beef, even more later on.
The thing about whiskey is that the raw materials cost is a very small part of what we pay. In fact, all of the cost of production is a very small part of what we pay. The biggest part of what we pay is taxes, so to the extent the FET provides tax revenue that can then be dolled out in subsidies to ethanol producers, we're already paying for it.
I wouldn't worry too much about the recent run up in the prices of corn. We weathered the incredible increases in the price of gas without a hitch. Business around the country is booming. Unemployment is down and corporate profits are quite strong. In the scheme of things the price of corn is not that big a deal.
Watch the business news this week and now they are speculating on how high the price of wheat will climb. I'm sure that most of you are aware that there are basically three geographical areas that produce a significant amount of wheat. One of the areas, you figure it out, is going through quite a dry season. Big deal, like that hasn't happened before. Get over it.
Once the biofuel farce is over the price of corn will come back down to more stable prices. Most everyone already knows that biofuels as we know them are not as viable an alternative as some would lead you to believe. Personally, I'd rather have an electric car which I could plug in and recharge using nuclear energy.
Personally, I'd rather have an electric car which I could plug in and recharge using nuclear energy.
All current battery technologies require massive amounts of stripmining for their components...not exactly eco-friendly...and of course recycling them is even more of a headache...as is storage of nuclear waste.
No one technology is the answer...you need to change the way society operates and the mental attitudes about wastefulness.
The Original Honda Civic(1973) was 3 feet shorter than the latest model (and over a foot shorter than the new Fit) and the carburated 1982 FE model got 55mpg (4 more than the current hybrid model) on the highway. My 11yo, 160,000 mile pickup gets (and was rated) higher mpg than any I could go out an buy new today, yes the new ones are bigger and can tow more...but I actually want a smaller truck than I have...but nobody imports one (smaller trucks are available in other countries).
Then, of course, houses tend to keep getting bigger and farther from the city centers, with more energy wasting features added to them.
Edit: Damn, I thought this was the off topic area...oops
I know what you mean. It's going to take some major changes on people's part to make any difference.
I live 4.5 miles from my work and drive a 2005 Honda Civic. Depending on whether I take the highway or go thru town I get between 28 and 37 miles per gallon. After driving to and from work and any errands that may have to done I fuel up about once every three weeks.
I've got a coworker that lives 55 miles from the shop who alternates between a Dodge Durango and a full size Dodge Hemi pickup. Mother of God, he has to fill up at least twice a week at about 70 bucks a pop. What a joke.
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