The prices for corn are expected to rise for corn, which will in turn raise prices for other food products like poultry, beef, and pork since corn is a vital to their needs.
A U.S. Department of Agriculture planting report released yesterday has corn production down 8 percent with soybean production up 18 percent from 2007.
Many farmers are switching to soybean production as a result of rising prices from Asian demand.
Last year was a record for corn production. Farmers planted 13.1 million bushels of corn, this year will still see historic corn production but prices are expected to more double for corn due to ethanol production. In early 2007 the price was $3 per bushel, according to the Financial Times some traders are speculating that prices will reach as high as $6.50.