Spain's drought and higher demand drive up corn prices

Published 2021년 4월 22일

Tridge summary

In 2021, Mexico has seen a significant increase in the prices of yellow and white corn, with a 78% rise for yellow corn and a 25% increase for white corn over the past year. This price hike, largely due to drought conditions in South America and increased demand from China, is adversely affecting the cost of basic food for Mexicans, potentially leading to higher prices for meat, milk, eggs, and tortillas. The rising costs of corn and other inputs are putting pressure on tortilla producers, who have already increased the price of tortillas this year, with more increases expected. Additionally, concerns have been raised about hoarding and the monopolization of the corn market by large trading companies and grain producers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The price of yellow corn, used mainly as animal feed, soared 78 percent in the last year and that of white corn, used to make tortillas and other products for human consumption, increased 25 percent, according to benchmarks. in the international grain market. On the Chicago Stock Exchange, a market where raw materials from all over the world are traded, yellow corn is traded at a future price (contracts to be paid next May) of $ 225 per ton, when a month earlier it stood at 126 Dollars. A ton of white corn was trading at $ 4,990 in April last year and now at $ 6,203. The price of both types of grain reflects an important impact on the cost of basic food for Mexicans, because due to its use, it has the potential to increase the price of daily consumption products such as meat, milk, eggs and tortillas, among others. According to analysts from the Agricultural Markets Consultant Group (GCMA), the higher price of corn in the last year is a consequence of the drought conditions that ...

Source: Inforural