Not enough corn production from farmers has resulted in the smallest inventories of the commodity in nearly four decades, Bloomberg reports.
While consumption of corn is increasing, the expansion of planting crops and rising prices of food are not filling the demand. Corn growers ranging from Canada to Russia increased generation of corn as well as rice and feed, but have failed to meet an increased demand of 20 percent, according to the U.S. Agriculture Department. Flooding, drought and other inclement weather are also having an impact on the commodity.
Paul Jeschke cultivates 3,600 acres southwest of Chicago and intends to increase crops of corn by as much as 50 percent since current prices of corn are more profitable than soybeans by as much as $200 per acre.
"We need to grow a huge crop this year to meet global food needs," Jeschke told Bloomberg. "The increased demand for meat and dairy is driving demand for corn and soybeans."
This year's corn inventory is the smallest in 37 years.
Just before 8:15 a.m., corn futures were down 1.46 percent, a 0.105 cent decrease to $7.0975 per bushel.
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