BY VOA NEWS – The U.S. Department of Agriculture says reserves of corn have fallen to their lowest level in 15 years, which is likely to boost prices of many kinds of food in 2011.
The price of corn has already doubled in the past six months, rising above $7 a bushel as demand outstrips supply. Some analysts say the price may break the all-time record high of $7.65.
Rising corn prices can affect the cost of many other products because the grain is used to feed livestock for meat, gets turned into sweetener for processed foods, and is distilled to make ethanol for motor fuel.
Demand for corn has been boosted by rising ethanol production and consumers seeking a substitute for wheat which is in short supply due to weather problems in some key growing areas.
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