Corn prices have increased by 54% in 2006
In a development that should surprise no one, corn prices on commodities markets have increased dramatically this year. According to a recent article on Bloomberg.com titled Corn Rises in Chicago as Export Demand Surges, Supplies Shrink this price increase has been caused by lower production (a drop of 1.9% from last year) and increased demand from both export markets and ethanol production.
The article also mentions that corn inventories will be at their lowest level since 1984, that “ethanol demand is screaming” and that the price surge may not slow until it has gone up another 10%.
I expect that corporate farmers are pleased by the developments.