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National & World Ag News Headlines |
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Weather Factors Contributing to Hike in Corn Prices
USAgNet - 05/11/2021
The price of corn in the United States has been increasing this year and is now approaching record highs. As of Monday, according to The Wall Street Journal, corn prices are up 50%, with the cost of a bushel at $7.73, and prices are closing in on highs not
seen since 2012 when drought decimated crops across the Midwest and sent prices soaring to $8.31 a bushel, the Journal reported.
Like in 2012, the weather is a factor in the rising corn prices and, once again, drought is the primary trigger. However, it's affecting farmers in Brazil rather than in the U.S.
With rainfall amounts far below normal, the weather pattern in Brazil continues to stress corn crops, which are now in the critical pollination stage. Last November, AccuWeather experts warned that this year's crop would be adversely impacted by the dry
weather.
AccuWeather Founder and CEO Joel N. Myers sees the sharp increases in corn prices "as a result mainly of weather impacts." Myers said the current rise in prices dates back to August of last year after U.S. corn farmers took a hit when a derecho caused
widespread damage across Iowa, the nation's top corn-producing state. AccuWeather estimated economic damages from the storm, which raked across a 770-mile swath of the heartland, to total $11.2 billion.
Myers said the derecho damage was just the beginning because corn prices are influenced by what happens elsewhere around the world. And right now, what's happening in Brazil is exacerbating the rise in prices.
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