<p><img src="https://static4.businessinsider.com/image/609166a634af8d001859ac9e-1620/2014-09-25t120000z_2108172440_tb3ea9p19ztoc_rtrmadp_3_markets-grains.jpg" border="0" alt="Farmer corn field" data-mce-source="Jim Young/Reuters" data-mce-caption="Farmer Dan Roberts inspects his corn crop during the harvest in Minooka, Illinois."></p><p><a href="https://markets.businessinsider.com/commodities/corn-price"></a></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p><a href="https://markets.businessinsider.com/commodities/corn-price">Corn prices</a> have jumped roughly 142% over the past year to $7.56 per bushel, the highest price seen in eight years for the crop.</p><p>A drought in Brazil and increased demand in China have put pressure on global suppliers.</p><p>According to <a href="https://www.census.gov/foreign-trade/Press-Release/current_press_release/index.html">data</a> published on Tuesday by the US Census Bureau, corn exports increased from $2.2 billion through March of 2020 to $5.5 billion through the first three months of 2021, and in March alone, the US exported $2.12 billion worth of the crop. </p><p>China had not been a major corn importer for several years under the Trump administration, but domestic corn prices began rising in early 2020, leading to unusually large purchases from the Chinese.</p><p>Additionally, in the April 9 World Agricultural Supply and Demand Estimates (WASDE) report, the USDA revealed corn stocks in 2020-2021 hit a seven-year low of 1.352 billion bushels.</p><p>Falling supply and rising demand, coupled with a drought in Brazil, have corn prices surging globally.</p><p>Brazil's 2020/2021 total corn crop estimate was lowered by nearly 8% to 104.1 million tonnes as dry weather continues to hurt yields in the country, forecaster Safras & Mercado reported last Friday.</p><p>"Brazil's weather continues to provide support for the price gains. A material chunk of Brazil's second corn crop sits in drying soils," Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia, told <a href="https://www.agriculture.com/markets/newswire/grains-corn-hits-8-year-high-as-brazil-drought-lifts-supply-concerns">Agriculture.com</a>.</p><p>"The situation is critical in Brazil," Paris-based adviser Agritel said in a report, <a href="https://www.bloomberg.com/news/articles/2021-05-04/corn-tops-7-a-bushel-for-first-time-since-2013-on-supply-worry">per Bloomberg.</a></p><p>"This should further strain the global balance sheet, while the U.S. will have to partly compensate for the drop in South American exports," Agritel added.</p><p>Rising corn prices have had a big impact on a number of goods including tortillas in Mexico.</p><p>CNN <a href="https://cnnespanol.cnn.com/video/precio-kilo-tortilla-maiz-inflacion-abril-2021-roberto-aguilar-forbes-economia-redaccion-mexico/">reported</a> that prices per kilogram of corn tortillas are nearing $1 (20 pesos) in the countrylast year national prices hovered <a href="https://www.milenio.com/negocios/precio-de-la-tortilla-2021-sube-en-mexico" target="_blank" rel="noopener" data-t-l=":b|e|inline click|${u}">between 9.7 and 18 pesos.</a></p><p>Rising commodity prices go beyond corn, with everything from <a href="https://www.businessinsider.com/lumber-expensive-increases-price-new-homes-national-association-home-builders-2021-5">lumber</a> to <a href="https://markets.businessinsider.com/news/stocks/copper-price-outlook-demand-rise-goldman-sachs-sustainability-commodities-2021-4-1030304102">copper</a> surging and leading many economists to worry about inflation.</p><p>Mohamed El-Erian, the chief economic adviser at Allianz and president of Queens's College, Cambridge, told CNBC on Monday that he believes <a href="https://markets.businessinsider.com/news/stocks/how-bad-inflation-get-mohamed-el-erian-transitory-federal-reserve-2021-5-1030380375">inflation is here to stay</a> and not "transitory" as the Federal Reserve claims.</p><p><a href="https://markets.businessinsider.com/news/stocks/corn-prices-jumped-142-past-year-demand-china-drought-brazil-2021-5-1030386126#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/scorpion-venom-most-expensive-liquid-in-the-world-2018-8">Why scorpion venom is the most expensive liquid in the world</a></p>
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