Average Corn Prices For Last 5 Years
As one of the most important crops in the United States, corn is produced and consumed in large quantities every year. Corn is not only a staple food for humans but also serves as a significant source of animal feed, biofuel, and industrial products. Therefore, corn prices play a critical role in the country's economy. In the last five years, the average corn prices have undergone significant fluctuations. This article will provide an in-depth analysis of corn prices from 2016 to 2020.
2016: The Year Corn Prices Hit Rock Bottom
In 2016, corn prices were at their lowest point since 2007. The primary reason for the low prices was an oversupply of corn due to favorable weather conditions that led to a bumper crop. The 2016 corn harvest was the third-largest in history, with an estimated yield of 174.6 bushels per acre.
As a result of the surplus, the average corn price for the year was $3.36 per bushel, which was significantly lower than the previous year's average price of $3.61 per bushel. This low price meant that many farmers struggled to make a profit, and the government ended up providing them with billions of dollars in subsidies.
2017: The Year of Stable Corn Prices
In 2017, corn prices stabilized and remained relatively steady throughout the year. The average corn price for the year was $3.50 per bushel, which was slightly higher than the previous year but still lower than the average corn price for the last decade. The USDA estimated that the 2017 corn harvest was 14.6 billion bushels, which was the second-largest on record, only slightly lower than the previous year.
The reason for the stable corn prices was due to a decrease in corn exports that was balanced out by increased demand for corn in the domestic market, particularly in the ethanol industry. The corn market was also supported by a weaker dollar, which made U.S. corn more competitive in the global market.
2018: The Year of Trade Tensions
In 2018, corn prices were affected by trade tensions between the United States and China. The government imposed tariffs on various Chinese goods, including corn, as part of a broader economic and political dispute. China is one of the largest importers of U.S. corn, and the tariffs resulted in a significant decrease in corn sales to China.
The average corn price for 2018 was $3.61 per bushel, which was slightly higher than the previous year's average. However, the price fluctuated throughout the year due to the uncertainty caused by the trade tensions. The USDA estimated that the 2018 corn harvest was 14.4 billion bushels, which was slightly lower than the previous two years but still one of the largest on record.
2019: The Year of Unfavorable Weather Conditions
In 2019, corn prices were affected by unfavorable weather conditions in the Midwest, which led to delayed planting and lower crop yields. The USDA estimated that the 2019 corn harvest was 13.7 billion bushels, which was the lowest in four years.
The average corn price for the year was $3.56 per bushel, which was slightly higher than the previous year's average but still lower than the average for the decade. The higher prices were due to the reduced supply caused by the weather conditions, which led to increased demand for U.S. corn in the domestic and international markets.
2020: The Year of COVID-19
The year 2020 was dominated by the COVID-19 pandemic, which affected all sectors of the economy, including corn prices. The pandemic led to disruptions in the supply chain and decreased demand for corn due to a slowdown in the global economy.
Despite the challenges posed by the pandemic, the average corn price for the year was $3.56 per bushel, which was the same as the previous year's average. The USDA estimated that the 2020 corn harvest was 14.2 billion bushels, which was slightly higher than the previous year.
Conclusion
The average corn prices for the last five years have undergone significant fluctuations due to various factors such as weather conditions, trade tensions, and the COVID-19 pandemic. The corn market's stability is essential for the U.S. economy as corn is a vital crop that serves multiple industries. The government plays a crucial role in stabilizing corn prices by providing subsidies to farmers and managing trade policies with other countries. As we look to the future, it will be interesting to see how the corn market will adapt to the changing global economy and weather patterns.