I found this really scary.. after some thoughts I just had to post it here..
we should watch trends in ethanol production that might affect the price of corn:
The ethanol advocates like to say “we don’t eat much corn,” which is true. But in Mexico and some Central American countries, it is the food staple. It’s even more important as a source of feed. Our refrigerators are stuffed with corn: milk, eggs, cheese, chicken, pork, beef, yogurt, ice cream—these are all corn products.
What’s actually happening in the world now is that the price of grain is moving up towards its oil equivalent value. That means that the price of grain is now being set by the price of oil. If at any time the food value of a commodity is less than the fuel value, the market will move it into the fuel economy—that’s what the market does. So if the price of oil jumps from $60 to $80, the price of food will also jump. I don’t think most people realize yet that the price of oil is going to dictate the price of food.