"Popping" corn prices

After a steady decline in crop prices, the value of corn is at its highest after a 10 year slump. According to Bloomberg online December corn prices rose to its high of $3.5675 per bushel last Thursday.

This jump came after the U.S. Department of Agriculture speculated that corn harvests for this fall will only reach 10.8 billion bushels instead of the 10.9 billion bushels forcast that was released last month. Another factor in the 83 percent increase in corn prices during the past year is due to rising ethanol demand and rising meat production.

As of 2:30 p.m. on November 8, 2006 the December corn prices have once again risen after a short drop to $3.58. According to a document written by Illinois Extension Economist Darrel Good, this time last year the December corn was selling for $1.94 per bushel, just $.03 above the December 2004 corn price.

These record prices come as a big sigh of relief for Indiana corn farmers who are, coinsidentally, having record yeilds this fall. Normally it is one or the other, high prices and low yields, or low prices and high yields. Farmers who are playing thier cards right will lock in contracts for December corn and reap the rewards of a gratifying year.

Cheers to the economy for rising corn prices, to God for good weather and to the farmer for a 2006 year well done.