More on the corn drought

I’m unlikely to post links for every bourbon-related story that emerges about the midwest drought, but I’ll follow it until I convince the rest of you to pay attention.

More on the Midwest Corn Shortage


One thought on “More on the corn drought

  1. I imagine that feedstock price accounts for a very small percentage of cost. In brewing the cost of malt accounts for 5-10% of total cost, and I suspect that percentage is even lower for distilling (with considerably higher energy, tax, and storage costs). So while corn prices might double, the impact to the final price would quite small. The bigger issue would be if the quality/availability was very low, but due to the time lag between production and sale distilleries should be able to pay a premium over other purchasers (basically a type of commodity future, albeit a non-traditional one).


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s