It’s shaping up to be a tough summer for the corn market.
The summer is heating up more than usual, and this spells danger for crops in the west.
Temperatures in the Midwest, according to Bloomberg, have been up to 12° Fahrenheit above average, and these temperatures are moving into the Great Plains as well, threatening the supply of everything from corn to soybeans.
But that’s not all.
In China, corn crops are being threatened by the other end of the spectrum.
Ongoing flooding in the river valleys, especially the Yangtze River valley, is jeopardizing their newly planted corn crops.
As a result, China will be looking for more corn imports, especially in the U.S., as corn is the U.S.’s biggest crop.
But with our country’s limited supply and the increasing demand for corn not only for food sources but also now for biofuels, the supply is just not meeting demand.
Corn set for December delivery rose 1.1% on Tuesday on the Chicago Board of Trade, according to Bloomberg.
And this jump up is in direct contrast with the fall in prices that occurred on June 17, not a full week prior.
Stress is put on farmers that require the supply for animal feed as well. They just aren’t getting the output they need.
Unless China’s corn crops get back on track and the U.S. temperature forecast threatens a little less, corn prices may continue to rise.
That’s all for now,