Corn Supply Dropping Most Since 1995 Signals U.S. Rally
U.S. corn supplies, the world’s biggest, are dropping at the fastest pace in 17 years as drought damage exceeds government forecasts and five months of declining prices spur demand from livestock producers.
Inventories on Dec. 1 were 15 percent lower than a year earlier at 8.22 billion bushels (208.8 million metric tons), the smallest post-harvest stockpile since 2003, according to the average of 26 analyst estimates compiled by Bloomberg. Goldman Sachs Group Inc., Morgan Stanley and Macquarie Group Ltd. expect prices to rebound at least 17 percent to $8.14 a bushel in 2013.
While futures surged to a record $8.49 in August as the drought spread, they then tumbled 18 percent as U.S. exports slowed and buyers sought cheaper supply from Brazil and Ukraine. Prices will rebound because the government overestimated the harvest and probably will lower the figure when it reports tomorrow, the analysts said. The U.S. Department of Agriculture already expects global stockpiles on Oct. 1 to be the smallest relative to consumption since 1974.
“Consumers have become too complacent waiting for lower prices,” said Christopher Gadd, an analyst at Macquarie in London who expects prices to reach $8.50 this year. “The story going forward will be an improvement in U.S. exports. Buyers have nowhere else to turn.”
"Corn rose as much as 68 percent from June 15 to mid-August on the Chicago Board of Trade before retreating."
When one of the biggest economic problems American must overcome to enter an even average economic recovery is our dramatically falling living standards - WHY ARE WE ALLOWING THIS INSANE CORN ETHANOL CORRUPTION IN A DROUGHT!
Maybe we can have $ Tag other Americans incomes with the support of the OLB troop claim this is all great. It is good for Americans - really.
Time to stop the Progressives from their mean spirit and hard heart delusions they impose upon of ordinary Americans via completely purposeful deception.
American natural gas is ready to go. Let us just hope we do not end up exporting it like our refined oil because Progressives came up with more deceptions our dishonored 'press' will aid and abet them with.