As the Midwest goes through its worst drought since 1956, corn prices are approaching the record highs of last summer, according to SmartMoney.1 comment on this story
Corn is used in 75 percent of supermarket products, meaning the rising cost of corn could cost Americans more at the grocery store, according to the article. But price jumps are likely to be small.
"A 50-percent increase in the price of corn tends to raise total shopping bills by about 1 percent," Ricky Volpe, a research economist with the U.S. Department of Agriculture, told SmartMoney. The price of corn has gone up by 45 percent this summer.
For foods affected by corn's price jump, prices should start to rise in approximately two months, Volpe told SmartMoney. Eggs and dairy will be the first items to see the increase, then meats starting with chicken, leading to beef.