The U.S. Department of Agriculture (USDA), a bomb falls in early 2007 that a great importance for the coming year may have about how to satisfy our need for food and fuel at low cost.

In a report measuring the previous corn crop, the USDA revealed that there is less grain available to many experts had predicted. We all know that when supply overwhelms demand occurs. The next day – January 12, 2007 – the price of corn has exploded.

Why iscare?

Sorry for the bearer of bad news, but the rising price of corn may mean that food, energy, housing and bills will rise – and quickly.

You may ask how can a simple grains like wheat creates chaos in my economy?

The answer is simple. Corn is not only that the core yellow, you chew the head of every summer. Wheat used as feed for meat and poultry industries. So expect the sources of protein to increase in price. Grains are also used as a sweetener. ButThe flavor can be bitter if the price of cereals, breads and cakes Skyrocket.

But most important were wheat fields of America to become a new battleground. , And the soldiers are the ones who need cheap food to survive, and those who believe corn is a panacea for the high energy prices.

The surge in grain prices is the result of the growing interest in developing alternative fuels. Ethanol made from corn, is one of the most popular candidate.

Lastyears, in an article for Fortune magazine, Lester Brown, president of Earth Policy Institute, said that demand for corn could have devastating consequences. "The growing myth that corn is no panacea for our energy misery leads us to a potentially dangerous global fight for food," he wrote.

Brown believes that competition for corn means that "the cars, not people, asks most of the increase in world prices for grain consumption."

Long before the report was USDAwas released, the price of wheat to enjoy a nice run up. After just detect depression during the summer of 2006 – a model that has taken place almost every summer in the 21st century – the grain begins to move. By the end of November was the maize has increased more than $ 1, bringing in March 2007 futures prices to around $ 3.90 per bushel.

Futures traders who saw an opportunity at a low price in the past year is certainly welcome. Every $ 1 that moves in the price paid $ 5000 for each contract.

But Brown believesincrease in food prices, life for the poorest populations in danger.

Jason Kottler, who blogs at Kottle.org are worried that one of the nations hardest hit by rising wheat prices near America – Mexico, has been found. "The cereals (maize) was probably the first domesticated in Mexico and remains the cornerstone of Mexican cuisine."

And Mexico, a large quantity of wheat imported from America, because it is cheaper than local corn, Kottler wrote in his November 7, 2006blog.

Meanwhile, to Lovecraft Biofuels, Silver Lake, CA. And Brian Friedman convert late-model Mercedes Benz diesel engine to run on vegetable oil. And work under the Los Angeles Times.

Friedman activity is driven by the idea that individuals can be free of energy in the Middle East. But one day not far in the future for the owners of these vehicles can be a rude awakening.

Imagine that drivers of alternative fuelsvehicles to slow down the aisle food trade in search of food to feed their car. They have shelf corn oil, and you realize that the price has doubled and now they are paying more for fuel than their neighbors who are running with the old fuel injected Hot Rods.

Is there a solution?

In my previous article Hedge expenditure for the home: Families can learn Secrets of Corporate Finance. I would like to clarify that individuals and families not only have the highest prices.

In fact, families throughoutworld can afford to tolerate inflated prices for food, shelter and clothing – much less fuel.

A free exchange of wheat tutorial, go to the Chicago Board of Trade website. Click on education> publications and then seek an introduction to Trading CBOT Agricultural Futures and options.

Copyright 2007