Price of corn hits 9-year high as surge in commodities continues

Price of corn hits 9-year high as surge in commodities continues


Dale Nething, 86, transfers a load of corn from his truck to a grain silo on his family farm in Ravenna, Ohio, October 11, 2021.

Dane Rhys | Reuters

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.

President Joe Biden announced last week that his administration would temporarily allow the sale of higher-ethanol gasoline over the summer in an attempt to offset rising energy costs. Summer is typically one of the highest demand periods for gasoline in the U.S.

The rising price of corn and other food commodities are contributing to the highest inflation rate the U.S. has seen since the 1980s, leading the Federal Reserve to start raising interest rates. Some economists and Wall Street strategists are worried that, in the process of trying to slow inflation, the central bank could tip the country into a recession.

The World Bank warned earlier this month that global food insecurity was likely to rise this year due to the higher prices.



Source

India to maintain Russian oil imports despite Trump threats, government sources say
World

India to maintain Russian oil imports despite Trump threats, government sources say

Russia’s President Vladimir Putin (R) speaks with India’s Prime Minister Narendra Modi (L) during a visit to the shipyard Zvezda, as Rosneft Russian oil giant chief Igor Sechin (C) accompanies them, outside the far-eastern Russian port of Vladivostok on September 4, 2019, ahead of the start of the Eastern Economic Forum hosted by Russia.  Alexander […]

Read More
U.S. envoy tells Israeli hostage families he is working on plan to end Gaza War
World

U.S. envoy tells Israeli hostage families he is working on plan to end Gaza War

U.S. envoy Steve Witkoff (L) arrives to meet families of Israelis held hostage by Palestinian militants in the Gaza Strip since October 2023 as they demonstrate in Tel Aviv’s ‘Hostage’ square on August 2, 2025. Witkoff met the anguished families as fears for the captives’ survival mounted almost 22 months into the war. – | […]

Read More
How Florida quietly surpassed California in solar growth
World

How Florida quietly surpassed California in solar growth

Solar energy is booming across the U.S. and, for the first time, Florida is catching up to industry powerhouses Texas and California. Despite removing climate change from its official state policy in 2024, Florida added more utility-scale solar than California last year, with over 3 gigawatts of new capacity coming online.  “This is not a […]

Read More