Rising corn prices could result in higher prices at restaurants, according to Bloomberg.
Corn prices have risen to $7.13 a bushel, a nine-month high, on the Chicago Board of Trade on Thursday, according to Bloomberg. The price for the commodity has jumped 37 percent since June 15, as droughts in the Midwest damage crops and scarcity of water show no sign of being reversed.2 comments on this story
"Corn is king, and corn is a commodity that drives every other commodity," Alice LeBlanc, chief global supply chain officer at Popeye's, owned by AFC Enterprises Inc., told Bloomberg. "Unless we get some precipitation across the corn belt, the corn prices will stay high."
Rising corn prices could result in higher meat costs at places like McDonald's, according to the article. Coca-Cola Co. and General Mills Inc. could see higher sweetener and corn prices, straining business, with consumer sentiment at a six-month low.
Corn is the biggest crop in the U.S. and was worth $76.5 billion in 2011, according to the article. It's the primary ingredient in feed for chicken, cattle and hog.