It is not good news that the price of corn is falling

By: Trademagazin Date: 2023. 12. 04. 11:34

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

Corn prices fell to their lowest level in three years as supply from the United States and Brazil increased and demand stagnated. Although as a result of this, food price inflation eases, at the same time pressure is put on farmers who expected long-term high prices.

Corn prices in Chicago have fallen below $4.50 in recent days, the lowest level since December 2020. Last May, it was more than $8 a bushel (about 25 kilograms), when prices soared due to the Russian attack on Ukraine and the La Nina climate phenomenon.

In response to high prices, American farmers expanded their corn acreage last year, resulting in a significant increase in supply. However, with rising supply, demand for maize has fallen and farmers are now facing losses as a result of falling prices. In the Midwest corn belt, 6 million more acres of corn were planted, but due to the drop in demand, interest in corn fell by nearly 3 percent between 2022 and 2023.