Corn Prices Chart
Corn Prices Quote
The Price of Corn on the CBOT has more than doubled in the past 12 months because of record purchases by ethanol producers and rising demand from livestock farmers. Only 87.2 million acres may be planted with corn this summer, rather than the 92.2 million the U.S. Department of Agriculture forecast before the flooding, according to the Linn Group, an agricultural researcher in Chicago.
More bad weather could push the Corn Prices up, the most-valuable U.S. crop in monetary terms, to $9 a bushel, according to Hussein Allidina, the head of commodity research at Morgan Stanley. That would beat the record set in 2008 of almost $8. Corn Futures for July delivery closed yesterday at $7.855 on the Chicago Board of Trade, up 7.3 percent in three days.
Consumption of the four staples that supply most human calories - wheat, rice, corn and soybean - has outstripped production for much of the past decade. The imbalance has resulted in two huge spikes in international grain prices since 2007, with some grains more than doubling in cost.
As Corn prices rise, farmers invest in costly fertilizer and new equipment that can help them increase crop yields. Strong demand allows fertilizer companies and farm equipment makers to increase their prices. Corn prices surged 2.8 percent Thursday after the government's report.
As the world's Corn Spot Price , the U.S. must produce as much of the grain as possible to offset tight supplies and meet growing demand from other nations and ethanol and livestock producers. The food shortages of 2008 initially were caused by droughts in grain-growing countries a year earlier that reduced stocks of grain.
Corn prices also rose in 2008 in part because about a third of the U.S. corn crop went to ethanol production, leaving less for human consumption and animal feed. Corn prices tripled between 2006 and 2008 to $6 from $2 a bushel.
A primary feed ingredient for most of the Cattle Prices tock industry, corn typically comprises two-thirds to three-fourths of the rations to fatten chickens, pigs and cattle to slaughter weight. Cocoa prices have doubled over the past year, deflating a profit resurgence for beef and pork producers after the 2008-09 recession hurt meat demand.