Corn plunged the most in nine months, sparking a slump in soybeans and wheat, after the U.S. government said domestic inventories were bigger than analysts forecast and that farmers will plant the most since 1936.
Inventories of corn on March 1 fell to a nine-year low of 5.399 billion bushels in the U.S., the world’s biggest grower and exporter, mostly because last year’s drought cut output, the Department of Agriculture said today. While that’s down 10 percent from a year earlier, analysts in a Bloomberg survey were expecting a drop to 4.995 billion. Farmers will sow 97.282 million acres, up from 97.155 million in 2012, the USDA said.
Corn stockpiles in the U.S., the world’s biggest grower, totaled 5.399 billion bushels as the month began, down 10 percent from 6.023 billion a year earlier, the USDA said today in a report.
After today’s USDA report, corn prices plunged the maximum allowed on the Chicago Board of Trade, while soybeans fell the most since November and wheat headed for the biggest drop since 2011.
“This is a majorly bearish report,” Dennis DeLaughter, an analyst at Vantage RM in Houston, said by telephone. “It’s a feed issue, and it tells you that there was more supply to begin with. This would mean commercials haven’t bought as much as they normally would, and that adds to the bearishness.”
Corn futures for May delivery plunged by the exchange’s 40- cent limit, or 5.4 percent, to $6.9525 a bushel at 11:50 a.m. in Chicago, heading for the biggest decline since June 12 and the lowest price since March 7.
The indication will lead to far less food inflation than earlier predicted, and cheaper supplies for feedstock.
I has posted that corn prices are expected to fall 1/2 of what it is selling for now. RLP it is the fear game they like to play. Which is the same game Norris plays. No wonder he is part of the problem and not the solution as he wants to be known for with his rambling. He won't go in front of the EPA with all of his infinite wisdom on the subject. he is just another blow hard and puzzy.
Even if corn prices fall; which is only a corn lobby forecast and we all know how dishonest they are, corn which still for more than it should costing American more be destroying wealth.
Corn ethanol does not create energy.
Corn ethanol increases co2 emissions and dramatically increases water pollution
Corn ethanol has no purpose in gasoline as oxygenation is complete obsoleted by computer control injection
Corn ethanol will always cost 100% to 300% more than methanol form natural gas. Direct conversion of all the natural gas wasted on fertilizers/drying canbe directly converted leaving all the corn.
So it serves NO USEFUL PURPOSE AND PROVIDES NO BENEFIT.
It will always cost more than the rational alternative of methanol.
It will always cause more total pollution than good quality gasoline and far far more than methanol from natural gas.
The Economist - A Progressive economics mag with huge credibility on the Left. Their true elite.
That is a problem for the future. In the meantime, rather than rig things still further, as the farm lobby would like, there is one simple fix the EPA can do to ease matters for motorists. That is to relax (or, better still, abandon) the purchasing schedule for corn-based ethanol. The EPA has the authority to do so. If it refuses, then Congress should act to do so instead. The ethanol mandate is clearly wasteful, does environmental damage, contributes to higher food prices at home and abroad through the misallocation of agricultural resources, and is a needless tax on everyone who drives in America. Time for it to go.