Thursday, April 01, 2021

Agri Econ 34, High corn demand to feed both animals and cars

Corn world prices keep rising, bad news on efforts to control higher inflation worldwide. Also soybeans and wheat. Current prices of these three commodities are at their eight-years high since around May-June 2013. Here are prices the last 12 months.

US President Joe Biden has pushed high oil-gas-ethanol prices by flatlining or cutting US oil-gas production by cancelling fracking in federal lands. Countries are slowly recovering from lockdowns, oil demand is rising but US oil output/supply is restricted by Biden policies. Autocrats in OPEC member-countries, Russia jumping with joy with higher oil prices. China is now into oil gas fracking too.

Watch ethanol prices, rising through the roof under this climate and energy policy environment. Biden wants to penalize fossil fuel to "save the planet" so demand for corn and other major agri crops rise, their prices rise to the roof too, corn feed animals and cars at the same time.

High corn prices means high poultry, hogs, beef prices. Here are the five-years prices of the three animal products.


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