Bigger corn surplus could slow food inflation
WASHINGTON (AP) - October 12, 2011 (WPVI) -- Food prices could rise more slowly next year because farmers have a bigger surplus of corn on hand than previously thought.
The Department of Agriculture estimates farmers have 206 million more bushels of surplus corn on hand at the start of this year's harvest. That means farmers will have 866 million bushels of corn on hand at the end of next summer. That's higher than last month's forecast of 672 million bushels.
The bigger surplus could bring down corn prices, which soared to record levels in June because of limited supplies.
Corn is an ingredient in everything from animal feed to cereal to soft drinks. So cheaper corn could ease broader food prices. It takes about six months for corn prices to trickle down to products at the grocery store.
economy, farming, food, national/world
- Vice principal commits suicide after ferry accident
- Clouds to sun, cool today
- Get the 6abc StormTracker app
- WATCH: Action News Online
- Montco hall closes weeks before bride's wedding
- Search continues for robbers in armored car heist
- Avalanche sweeps down Everest, killing at least 12 32 min ago
- Penn State police: 3 posed nude at Nittany shrine
- Stalkers have QVC host living in fear
- McNabb serves 1-day sentence after DUI arrest
- Photos: Suspects in Ocean Co. child porn sweep
- 13 pound baby born at Delco hospital 19 min ago
- WWII vet gets anonymous surprise in Bucks Co.
- Video: Hero twins yell, hit carjacker to escape