Climatic Changes Play Major Role in Corn-Price Instability

.

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”.


Latest News

Herb Strather, Detroit blight Buyer Makes a Wednesday Deadline
Baidu with its Growing Mobile Presence, Hit 27 Percent Profit Increase
Third Quarter Profits for Samsung Electronics Drop Sharply
Federal Reserve Ends Bond Buying Programme, Keeps Interest Rates Low
Reduced Growth in Major Overseas Economies Affect U.S. Durable Goods Order
Lowe’s to Introduce Robots in Store for Customer Service
Facebook Shares Fall as the Company Portrays Increased in Expenses in 2015
USPS Audit Questions the Consistency of Surveillance Conducted on Mail
For the CEO of Twitter, Growth in Number of Users Is the First Priority
Highest Retail Sales Noted in Japan in Last Four Months
Madison Square Garden Co. is Planning a Split in Its Media, Sports and Entertain
In Matters of Auto Reliability Detroit Automakers Trail Behind Foreign Companies