Black Friday, also known as the Super Bowl for shoppers, is quickly approaching. Shoppers are actively searching and price checking to see which stores are going to have the best deals to start their holiday shopping. Black Friday shoppers are currently making a game plan of what stores they need to shop at and where to get the best deals as possible to be used as gifts for their loved ones during this season of giving.
But what makes Black Friday Deals so great?
Companies are creating more of their products so they can sell at a lower price so it attracts customers not only to their product but to their company as a whole. Is this ideal for the company right away? Probably not, but with the long-term goal in mind it probably favors them.
Current corn prices are a lot like Black Friday deals. Buyers are getting a heck of a deal on corn, but the Company (corn farmers in this case) are really taking a cut in what they should be taking because prices are so low.
But why are Corn Prices so low?
There is a couple of factors that play into this one.
Throughout the world, there has not been a significant drought for at least 18-24 months. When a drought happens, corn does not grow or produce as much as it normally would. When all of the countries around the world are all producing crops at a normal or even higher rate, prices are bound to get lower because no one is suffering from a shortage. Though it’s good that droughts are not impacting a specific country, it’s really taking a toll on the corn market.
With the advancement of crop technology such as the use of GMO’s, corn has been able to produce higher yields. With more corn being grown more than before all around the world, we have created an overabundance which results in lower prices. On the contrary, though, farmers are wanting to grow more corn though so they have more to sell, even though prices are very low.
This year’s corn crop has made an abundance more than it normally does (though it has not set a record high). Corn prices really stink right now, but we are hoping to be prepared in the future when someone bad happens to a corn crop anywhere in the world. Prices are bound to get higher in the future because that is how this cycle works. Farmers have to practice patience and trust that one day the deal is going to play in their favor, just like what Black Friday shoppers do each and every year.
Illinois State University