Most people have no idea how the far reaching the financial markets can be. Case in point, a can of coke. As you may know many softdrinks are sweetened with high fructose corn syrup. High fructose corn syrup is made from, you may imagine, corn. As a matter of fact as much as 36% of all corn not used for ethanol, goes towards the production of high fructose corn syrup.
And corn prices, like many other commodities, have been on a tear this year, partly due to fears of inflation. Traders often put money into commodities when they fear inflation. With the Federal Reserve printing more cash, more money has flowed into the commodity space. Odd to think a group of traders in New York and Chicago reacting to news in Washington could have such an impact what you pay at the grocery store for your favorite soft drink. Below is a graph of how corn is used.
