Corn and soybeans fell nearly 3 percent yesterday, according to Reuters, “as risk premiums built into the market in case of crop failure peeled away as favorable weather in the grain belt boosted production prospects.”

Soybeans have been extremely volatile to say the least, says commodities expert Kevin Kerr in Whiskey and Gunpowder.

The problem, says Kevin, is that all the rosy crop reports won’t come to fruition once harvest time rolls around. He says they’re just a lot of wishful thinking…

This year has been a fantastic year for commodities, says Kevin Kerr. Twenty years ago it was all very different – the focus was entirely on stocks.

Kevin says this is a major paradigm shift – $140 oil, $1,000 gold, $8 corn are the new reality. He says there’s no going back.

Are the markets telling us a different story? US stocks rallied yesterday. The Dow saw its best two-day advance in six years. Crude oil prices have slipped below $131 a barrel. Gold prices are also off their week highs.

Editor’s Note: Corn prices have hit record highs today and commodities expert Kevin Kerr says they are only going higher. High fuel costs are pushing food prices higher. Kevin says the solution is to think locally. Food sources will need to be closer to the final consumers. The old way is simply not sustainable anymore…

Renewed Midwest rains has corn and soybean prices through the roof, reports AP. Corn prices and soybean prices hit all-time highs following more heavy rains in Midwestern states, which left replanted crops once again under water.

Most of us Americans are so accustomed to a world of plenty; we have a hard time imagining a world of scarcity — much less making investments based upon this idea. But the energy markets provide a very powerful example of what happens when resources become less plentiful.

The world keeps turning and the resources get used up. It’s really quite simple.

We will always need energy to heat and light our homes. We all need water to drink, to clean with, to cook with. Of course, this has always been true.

Whether his travels take our commodities guru, Kevin Kerr, to the Middle East or the Midwest of the U.S., the stories are very similar. Most people are concerned about the rising costs of agricultural commodities. And they should be. The commodity boom is real.

We’ve been following the trend in food prices for quite a while. While we’re still diligently scouring the penny stock market for a way to invest, our resource expert, Kevin Kerr, is here with a little help on the subject.

With a great demand for a change in our energy consumption, the U.S. has been quick to follow in the footsteps of some of our international friends and adopt new and cutting edge fuels. Unfortunately, we may have adopted a project that was doomed to fail from the beginning.