Really, what crude oil and corn have in common? Most likely atoms of carbon and hydrogen. But that's more out there, on the market of biofuels, according to policies implemented by the US Congress. A short history in images to begin with.
"In 2005, the U.S. produced 42 percent of the world’s corn. (...) In 2005, over 58 percent of the U.S. corn crop was used for feed. The remaining U.S. crop was split between exports (25 percent) and food, seed or industrial uses such as ethanol production (17 percent)"
Less of the corn crop goes for feed and more of it is going to biorefineries, to produce ethanol, to replace crude oil derivatives such as gasoline.
Biofuels replacing oil, make the price of corn spike. For reasons yet to be determined...
"Ethanol (ethyl or grain alcohol) is a renewable fuel used to power vehicles and other internal combustion engines. Ethanol is currently made from feedstock crops such as corn, barley and sugarcane that contain significant amounts of sugar, or materials that can be converted into sugar, such as starch."
New higher prices for corn will affect the price of meat, from corn-fed livestock.
Makes no sense, right? Who's to blame? The ones that brought this nonsense in the first place:
The US Congress opened this biofuels cycle, introducing corn as a new sort of raw material on par with crude oil. Ever since corn has been forced to enter the energy market, a degringolade of price hikes emerged. All of this on the flimsy premise that burning ethanol will make engines cleaner than burning gasoline. Looks like it already made our food more expensive.
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