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Corn prices cause ripple through economy


Suggested Event
Jun 15, 2021 to Jun 17, 2021
High corn prices are causing a ripple effect throughout the U.S. economy, and the 2021 growing season could be the difference between price stabilization or all-time record high prices, according to Texas A&M AgriLife Extension Service experts.
David Anderson, AgriLife Extension economist, Bryan-College Station, said higher corn prices and their effect on other crops like wheat and soybeans, as well as their subsequent impacts on everything from bread and pasta to fuel and industry or feed and meats, is showing how interrelated agriculture is to the U.S. economy.
Most gasoline is also a 10% mix of ethanol, which also puts demand on corn supplies, especially as the economy continues to gain steam and people are returning to normalized travel patterns, Anderson said. The price for food-grade corn is also tied to the price of corn destined for feed and fuel. ....

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Cotton: 'Above-average uncertainty this season'


Shelley E. Huguley
Drought conditions could hurt cotton yields, but good prices and strong demand could improve the overall outlook for farmers.
Texas Crop and Weather Report – April 20, 2021
Drought and good prices will influence the final total acres of cotton planted, especially in Texas, said John Robinson, AgriLife Extension cotton marketing economist in the Texas A&M University Department of Agricultural Economics, Bryan-College Station. 
Robinson said cotton prices have recovered from a deep slide due to COVID-19. The pandemic recession sent cotton into a spiral as demand for cotton plummeted in April 2020.
Cotton prices bottomed on April 1 last year but began climbing back, in large part due to China purchasing large amounts of U.S. cotton to build up their reserves when prices cratered. The purchases provided cotton with a bump, but prices gained momentum as mills around the world ramped up production this year.   ....

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