Corn prices hit all-time high $6 per bushel

Corn crossed $6 per bushel last week
– an all time high that could increase the cost of producing beverages that use
high-fructose corn syrup as a sweetener.

Corn prices already rose 25 percent
since January, after overall food prices climbed 5 percent in 2007 – the
biggest increase the economy has seen since 1990, according to

Corn prices have traditionally
hovered between $2-3 per bushel. The current run-up in prices resulted from
conflicting interests that have seen a chunk of the nation’s corn crop pumped
into cars’ gas tanks while farmers have trimmed their corn fields in favor of
other crops.

That rising-demand-falling-supply
equation has sent HFCS prices 19 percent higher than they were last year.
Food business News
reported HFCS prices as high as $19.38 per 100 pounds on
March 14 – their most recent reading – and corn prices climbed about 50 cents
since then.

Those rising costs will likely find
their way into the price of products in the cooler case. Morgan Stanley Analyst
Bill Pecoriello reported that Pepsi would likely hike their prices by 3 percent
to cover their costs.