Wet Spring, Lousy Harvest Mean Higher Prices
And cotton has woes of its own, but for the opposite reason: a drought in Texas.
The government said on Thursday that The United States will have a surplus of just 695 million bushels of corn next year, less than the 900 million estimated last month.
The Agriculture Department said rain delayed planting schedules and will likely diminish crops by harvest time in September. This followed a more optimistic forecast in May, which predicted a drop in corn exports that could have replenished U.S. food supplies and eased prices.
More expensive grain has led to food price increases this year. Manufacturers and grocery stores have passed higher costs on to consumers. For all of 2011, the USDA predicts food prices will rise 3 percent to 4 percent.
To read the full story and to learn more about alternatives to cotton, visit WITN.com.