Title: Inflation Is Coming: 3 Reasons Why Corn Prices Are About To Soar
Headings: Inflation Is Coming: 3 Reasons Why Corn Prices Are About To Soar
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Content: Gallery: 12 Surprising Products That Contain Corn
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Favorable Supply & Demand
Economics 101 tells us that commodity prices are a function of supply and demand. All things being equal, prices go up when demand goes up. Prices also go up when supply decreases. Well, right now, both are happening in corn. For the past several years, corn has seen record, or near record, demand every year - and that was with a relatively weak global economy. Recently, the U.S. economy has strengthened and that means demand for corn is increasing - yet again. Concurrently, supply is decreasing which is a perfect storm for higher prices. There are two forces which are causing supply to decrease: record demand and that corn is trading below the cost of production.