A worrying supply picture and surging global demand helped U.S. corn futures break above $5 per bushel for the first time in two years today.
Globex December corn futures climbed 16.6 cents to 512.6 cents per bushel; corn is now more than 40 percent more expensive than it was on July 1.
Overall, reports the Associated Press, farmers have seen mixed results from their harvests. Ohio, Indiana and Illinois are among those states which saw their corn crop assailed by a damp, steamy summer. Wheat contracts also rose on supply concern; in this case, according to analyst Jason Ward, the reason was fear that the Canadian crop could experience a "hard freeze."
Russia barred all exports of grain until 2011 recently, and the Ukraine imposed a soft cap on total exports. That's thrown grain futures markets around the world into confusion, as importers scramble to find supplies for the coming year. Many emerging-market nations rely heavily on imported grain, which they now must buy from the U.S.
In other corn-related news, the industry is trying to change the way high-fructose corn syrup is referred to in the marketplace. For years, big refiners have tried to convince Americans that the sweetener is just like sugar, with no unique drawbacks.
But 54 percent of American adults are wary of the "high-fructose corn syrup" moniker, so the industry has decided to try a new tactic – the Corn Refiners Association is petitioning to change the name of the substance to "corn sugar," which they hope will defray concerns about the health effects.
Consumers have started checking the labels to see if the food they're buying contains high-fructose corn syrup; that's led manufacturers to shift products like Heinz, Ocean Spray, Capri Sun, Gatorade and Snapple from the syrup to traditional sugar, reports the Financial Times.
The switch may not fly, though. "These companies are trying to reposition products and brands and mask negative images and connotation," Peter Morrissey, who runs a public relations firm in Boston, told the FT. "In most cases they are not making health or nutritional improvements. Essentially, these are the same products with the same drawbacks – just with new names."
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