Prices of corn leaped to $7.56 per bushel as demand for the commodity continued to grow while stocks have fallen to multi-year lows.
- Data from the United States Department of Agriculture (DA) show that corn stocks in 2020-2021 hit a seven-year low of 1.352 bushels.
- In Brazil, weather conditions have continued to hurt yields with the total crop estimate lowered by nearly 8% to 104.1 million tonnes for 2020/2021.
- Paris-based adviser Agritel said the situation in Brazil could impact the global balance sheet, and the U.S. is expected to partly compensate for the drop in South American exports.
- In Mexico, prices of corn tortillas are now nearing $1 of 20 pesos from between 9.7 and 18 pesos in 2020.
- Domestic prices in China also started to rise in early 2020, leading to unusually large purchases.
- Along with higher prices of corn, other commodities such as lumber and copper have recorded price increases leading economists to believe that inflation will continue. This is contrary to the claims of the United States Federal Reserve that inflation is “transitory.”