Corn prices are now at an eight year high of $7.56 per bushel after surging about 142% in the last year. According to MarketsInsider, the prices have been fueled by a drought in Brazil and rising demand from China.
Corn exports from the U.S jumped from $2.2 billion in March 2020 to $5.5 billion in the first quarter of this year.
In March, U. S exports of corn totaled $2.12 billion.
Although China was not a major corn importer during Trump’s administration, rising domestic prices prompted the Chinese to start large purchases of the crop.
In Brazil, estimates of corn crop was downgraded by almost 8% in 2020/2021 to 104.1 million tons as the yields were destroyed by dry weather conditions.
Rising corn prices, together with other commodities such as copper and lumber are now seen as potential catalysts of inflationary pressures.
Corn futures are currently gaining. ZC1! Is up 0.50%
