KANSAS CITY, Mo. — A severe drought in the Midwest might lead to food inflation, according to the Kansas City Star.
The cost of corn has been skyrocketing and prices for much-needed feedstock for ranchers are also on the rise, the article states. Buying things like hamburgers and milk could get more pricey in the next few months.
"Farmers are going to have higher feed prices. We're definitely going to see food inflation coming into the equation," Phil Flynn, a veteran commodities trader for the PFGBest brokerage in Chicago, told the Kansas City Star. "I think we're at the point of bigger problems. This was one of the most critical weeks, and we didn't get the rain that we needed."
Ranchers who use corn as their primary source of feedstock for their animals are being hit by the high price of corn, according to the article. "This is going to be a beef issue, as well as a pork and poultry issue. We're all sitting here with short breath watching the soybean and corn crops develop this year," Michael Miller, senior vice president of global research for the Denver-based National Cattlemen's Beef Association, told the Kansas City Star.