Floods in the US and Commodity Prices

Just as some people had been hoping that commodity prices and oil prices might have peaked, we are now seeing historic flooding in the US Midwest. Many farmers who might have been enjoying the high prices for corn and other commodities are now losing their crops and in some cases their homes.

Very sad, but it is also going to have a ripple effect - first on the crops directly effected, corn and soy, then on other grains as well, since there is a certain amount of interchangeability. It might also have an effect on oil prices as corn is increasingly being used for biofuel. Corn prices have reached 7 dollars per bushel for the first time ever, and oil prices are now being predicted to reach 140 dollars per barrel (although I have not seen a flood-oil price link referred to yet).