Commodities Roundup: August 2012

September 5th, 2012


and drought continue to be the story for commodities in late summer. According
to Euromonitor's Senior Food Analyst, Francisco Redruello, the lackluster corn
crop is the root of high prices for grain and powdered milk, High corn prices
due to a small harvest means farmers will turn to low grade wheat for feed and
ethanol will use sugar cane instead of corn. This, in turn, drives prices for
grain and sugar cane up. 

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