The drought that has affected much of the country, particularly the Midwest, may send the cost of corn soaring, which will lead to higher food costs for everything from milk to beef and pork.
"Farmers are going to have higher feed prices. We're definitely going to see food inflation coming into the equation," said Phil Flynn, a veteran commodities trader for the PFG Best brokerage in Chicago. "I think we're at the point of bigger problems. This was one of the most critical weeks, and we didn't get the rain that we needed."