Price Of Corn Hits 9-Year High As Surge In Commodities Continue

Price Of Corn Hits 9-Year High As Surge In Commodities Continue

The surging price of corn hit another milestone on Monday morning as the cost of global commodities continues to push higher.

The contracts for July corn futures were trading above $8 per bushel on Monday, the highest level since September 2012. The contracts were trading near $6 per bushel at the start of the year.

Corn is just one of several agriculture commodities that has seen surging prices in recent weeks, in part due to the war in Ukraine. Ukraine is a major exporter of wheat and other items, such as sunflower oil, while Russia is a key producer of wheat and many of the chemicals used in fertilizer. That is leading futures traders to bet that higher input costs and more demand for corn as a substitute food item will drive up the price.

Even prior to the war, agricultural commodities were seeing some upward pressure amid supply chain disruptions and high transportation costs that are contributing to inflation throughout the economy. Drought in the western U.S. and elsewhere in the world has also driven prices higher.

In addition to global supply concerns hitting agricultural commodities broadly, corn also has a potential source of additional demand.

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Source: CNBC

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