Corn prices for fall harvest continue to trade at $4.20 a bushel, nearing a two-year high. The prices resulted from drought and shortfalls on countries China, Brazil, and Argentina. With the United States, being the highest corn production, these countries are next in line— and together account for account for almost a third of global supply.
In addition, global demand for corn also rises due to corn-based ethanol use. The US has been increasing its ethanol production to sell abroad. China has also rapidly expanding its own ethanol production facilities, with production expected to increase 25 percent in a few years, which soon rivals US ethanol generation.
After five years of bin-busting harvests, a near-record corn stockpile is still evident in the US. However, farmers planted fewer acres this year that could lower US stockpiles to its lowest level in five years next summer.
Global corn issues make ideal setups for Midwestern Farmers. Prices are rising on large stockpiles, and low fear of weather problems in the Corn Belt on summer may give them potential for a profitable year.
Corn Surpasses Average Pace
Corn progress reached its five-year average planting pace in Kansas and Nebraska despite a late start in some areas.
Farmers in Kansas surpassed the pace, getting 14 percent of the state’s crop in the ground over the previous week. As a result, Kansas reached 3 percent above the average pace and 13 percent ahead compared to last year.
On the other hand, Nebraska farmers caught up to the five-year average pace at 88 percent, 2 percent ahead compared to the previous year.
The USDA’s 2017 Crop Summary stated that there were 5,500,000 acres of corn planted in Kansas and 9,550,000 in Nebraska.
US Natural Gas Reaches New High
The commodity balloons to its three-month in the previous week. It traded $2.87 per million British units on Friday. US’ rising exports and stagnant production drove the stockpiles of the fuel, falling 35 percent over the last year.
Furthermore, the US is working to export more of its natural gas—planning to provide countries in Europe and Asia. The continents are strongly dependent on Russian’s natural gas.
Meanwhile, liquefied natural gas exports are expected to increase fivefold during the next two years. It would account for over 10 percent of the US’ overall production.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings in the market. Register an account now and begin your investing journey!