The reason why the price of corn keeps rising is simply that the demand exceeds the supply. The reason why the demand exceeds the supply is that the quantity of corn is insufficient and the demand increases, forming a buyer's market, thus pushing the price up sharply.
First of all, farmers' corn stocks have decreased, while the demand side has increased.
At present, there are fewer and fewer farmers with corn in rural areas, and corn is concentrated in the hands of traders, who hoard a lot of food, which also plays a decisive role in the price of corn.
Like some corn demand enterprises, feed processing industry, corn deep processing units, aquaculture and so on, they urgently need corn reserves.
When corn supply is insufficient, it is difficult to meet their demand, so we have to raise the price to buy it, which will stimulate the price of corn, but it also shows that economic development is improving.
Second, the factors causing the lack of corn
People often ask why there will be a shortage of corn stocks in 2020. We can understand it through public data, such as the decrease of corn planting area in Northeast China and the impact of natural disasters.
Third, affected by the corn market.
Secondly, corn futures are rising, and international food prices are also rising, which is affected by the corn market environment. This will also affect the price of imported corn, so it is reasonable to say that the current price increase of corn is also reasonable.
The rise in corn prices may also be that hot money has entered speculation, further promoting the originally rising corn market.
Fourth, how is the price of corn stable?
So to what extent can the corn market not continue to rise? This depends on market changes. Before the new corn goes on the market, it depends on whether other food crops such as wheat will go on the market in large quantities and whether the imported corn will increase in large quantities.
Only when the supply of corn is relatively sufficient, or there are other alternative food crops to replace corn, can the price of corn be stabilized. The above are personal opinions for reference and communication.