Experts fear there may be a ‘corn shock’ ahead for the U.S. economy.
The Kansas City Star reports that some experts believe the U.S. could be in for a corn price shock this summer. The story said that if drought was to strike the Corn Belt the price of a bushel of corn could go as high as $8 from the current $5.46.
The Star reports that experts are concerned that because ethanol is becoming a larger part of the U.S. fuel supply that drought and subsequent higher corn prices could lead to higher gasoline prices. "That’s because ethanol — mostly refined from corn — will make up about 6 percent of the nation’s gasoline supply this year, and that’s expected to rise to 10 percent over the next five years," according to the Star.