Corn Price Per Bushel Chicago Board Of Trade
Corn is one of the most important crops in the United States. It is grown on millions of acres of farmland and is used for a wide range of purposes, including animal feed, ethanol production, and human consumption. The price of corn is a critical factor for farmers, consumers, and businesses that rely on this commodity. One of the main sources of information on corn prices is the Chicago Board of Trade (CBOT), which is the world's oldest futures and options exchange.
What is the Chicago Board of Trade?
The Chicago Board of Trade (CBOT) was founded in 1848 and is a leading commodities exchange. It is located in Chicago, Illinois and is part of the CME Group, which also includes the New York Mercantile Exchange (NYMEX) and the Commodities Exchange (COMEX). The CBOT is focused on agricultural commodities, including corn, wheat, soybeans, and other products. It provides a marketplace for buyers and sellers to trade futures contracts, which are agreements to buy or sell a commodity at a specific price and time in the future. This helps to manage price risk and ensure a stable supply of goods.
What Factors Affect the Price of Corn?
The price of corn is influenced by a wide range of factors. Some of the most important include:
- Supply and demand: The supply of corn is affected by weather patterns, planting decisions, and crop diseases. The demand for corn is influenced by factors such as population growth, meat consumption, and ethanol production.
- Government policies: Government policies can have a significant impact on the price of corn. For example, ethanol subsidies and mandates can increase demand for corn, while trade policies and tariffs can affect exports.
- Competition from other crops: Corn competes with other crops for farmland, such as soybeans and wheat. This can affect the planting decisions of farmers and the overall supply of corn.
- Global economic conditions: Global economic conditions, such as economic growth and inflation, can influence the demand for corn and other commodities.
Recent Trends in Corn Prices
The price of corn has fluctuated significantly in recent years. In 2012, corn prices reached an all-time high of $8.31 per bushel due to a severe drought that affected crop yields. However, prices have since declined due to increased production and a decline in demand. In 2019, the average price of corn was around $3.70 per bushel, which is lower than the average of $7.50 per bushel from 2010 to 2012. The COVID-19 pandemic has also had an impact on corn prices, as disruptions in supply chains and changes in consumer behavior have affected demand.
Impact on Farmers and Consumers
The price of corn has a significant impact on farmers and consumers. For farmers, the price of corn determines their income and profitability. When prices are high, farmers can earn more money for their crops, which can help them invest in their operations and improve their livelihoods. However, low prices can lead to financial difficulties and a decline in the number of farms. For consumers, the price of corn affects the cost of food and other products. When corn prices are high, the cost of meat, dairy, and other products that rely on corn as feed can increase. This can also impact the cost of ethanol, which is used as a fuel additive and can affect gasoline prices.
Conclusion
The corn price per bushel at the Chicago Board of Trade is a critical factor for farmers, consumers, and businesses that rely on this commodity. Understanding the factors that affect the price of corn, recent trends, and the impact on farmers and consumers is essential for making informed decisions. While prices can fluctuate significantly due to various factors, the Chicago Board of Trade provides a reliable source of information for those involved in the agriculture and commodity markets.