Corn prices have increased more than double in the last year, as flooding and higher-than-average rainfall pushed U.S. production of the grain down, Bloomberg reports. Meat makers, who rely on feed for their livestock, and bio-fuel producers, who require ethanol from corn, saw their costs rise on the positive run for corn.
“The USDA told the markets yesterday that corn supplies will stay tight for another year,” Brian Grete, senior market analyst for the Iowa-based Professional Farmers of America newsletter, told the news source. “Now, we have a long-term story of tight supplies, and that means higher prices.”
Corn futures for delivery in July were up 1.5 cents, or 0.2 percent, to settle at $7.87 on the Chicago Board of Trade on the afternoon of June 10, having hit an all-time high of $7.9975 earlier in the day. The United States produces more corn than any other crop, with the commodity's value at $66.7 billion in 2010.
As prices for corn continue to increase, farmers may purchase more agricultural equipment to ramp up production of that produce. John Deere dealers provide harvesting equipment such combines, balers and tractors to those whose work is connected to the land.