Dr. Ed’s
Economic
Indicators

CORN

Release Date: Daily
Release Coverage: Month-End
Released By: N/A
Official Release: http://www.bloomberg.com/markets/commodities/cfutures.html

This index tracks the price per bushel of corn. The primary uses for corn are: animal feed, food, alcohol, ethanol, industrial usage and seed. The grades of corn traded on the Chicago Board of Trade (CBOT) are mainly used for animal feed. The U.S. produces about 10-12 billion bushels of corn a year and is the leading exporter of corn.

WHAT DR. ED SAYS:

It is vital for a bank that deals with agriculture-based businesses. However, corn prices do not only affect agriculturally-focused banks. This serves as an index that affects a variety of industries and input costs for production. As corn is manufactured and demand rises for it, we see cost diffusion through prices in livestock, fuels and at the supermarket. Corn is a substitutable commodity for some, but other industries are largely dependent on the product. Find out which industries in your market are susceptible to commodity risk.

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