CHAMPAIGN, Ill. — Grocery shoppers face hefty price increases if bad weather withers a U.S. corn crop that is now tethered to grain-intensive renewable fuel mandates, a new University of Illinois study warns.
A corn shortage, coupled with surging demand to meet government-ordered ethanol standards, could push cash prices to $7 a bushel, the study found, squeezing livestock producers and driving up prices for meat, milk, eggs and other farm staples.