The abundant supply caused some turbulence for the U.S.’s biggest money crop. Following the U.S. Department of Agriculture’s press report earlier said that U.S. farmers planted 90% of intended landmass for corn; the corn future for July delivery had decreased by around 6%. The 5-year average corn land mass percentage is around 80%, so it is natural for people to speculate an above-average corn output, not to mention there’s sufficient rain in the U.S. Midwest.
The overall trend for corn is similar to other agricultural commodities. Over the last 12 months, the price has steadily risen, as businesses implemented different procedures to preempt future inflation. Even including the pullback caused by supply abundance, the corn futures have gone up by around 28% in 2021 and 95% last year.
As a crucial component for food items and raw materials for industrial production, the corn market is likely to have a heavy effect on a wide range of consumer products. Around 40% of the total U.S. crop is actually used for ethanol production to blend in gasoline, which makes it a key component of the economy. At the time of this article, corn futures are around $6.18, while Soybean dropped 10 cents to $15.13, white wheat dropped 5 cents to $6.57.
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