Climatic Changes Play Major Role in Corn-Price Instability
As per recent findings, it has been illustrated that the prices of corn have been encountered to be instable due to the change in climate. It is being illustrated that the issue has turned to be a major cause of concern in the market.
Researchers, who carried out a study to acknowledge the reasons behind the corn-price instability, have asserted that the major cause is due to climatic changes.
It has been demonstrated that the findings of the study are based on a computer analysis, which concluded that the way trends of global warming are being administered, the measures encountered accounts for 20 C more than that recorded in the earlier times. However, some other estimates account for 30C or more, the way carbon emissions are being let out.
Researchers Noah S. Diffenbaugh, Thomas W. Hertel, Martin Scherer and Monika Verma, said, “U. S. corn-price volatility exhibits higher sensitivity to near-term climate change than to energy policy influences or agriculture-energy market integration”.
Further, they asserted that the major reason behind the driving up of prices of corn is heat waves, which have resulted due to global warming. They affirmed that the reason was much more considerable than taking into account the government policies to promote biofuels or than higher oil prices.
Nevertheless, the study authors have proposed that each year the effect of heat waves would be increased, as a consequence, the corn-price volatility will even increase by a factor of 4.1.
However, the study authors asserted that before the findings of the study were not obtained, they were not even sure whether climate changes would be rated above higher oil prices or government policies to promote biofuels
However, Diffenbaugh said, “The market effect of a binding biofuel mandate is likely to intensify as the climate warms”.