Monday, September 30, 2013

"Corn price hits 3-year low on US stocks upgrade"

Corn is lower since this piece was published, $4.4425 last.
From Agrimoney:
Corn futures tumbled to a three-year low, while soybeans slumped back below $13 a bushel, after the US revealed that its inventories of both crops were far bigger than had been thought.
Corn futures for December dropped 1.7% to $4.46 ½ a bushel, the lowest for a spot contract since September 2010.
Soybeans for November delivery plunged 2.4% to $12.88 ¼ a bushel, their lower in more than a month.
The falls followed the release by the US Department of Agriculture of its latest quarterly stocks report, a series which has gained a reputation for causing large price moves.
Extra supplies
The report estimated corn stocks as of September 1, the close of 2012-13, at 823.6m bushels, a number far higher than the 661m-bushel figure that the USDA had been working with, and to which investors foresaw only a small upgrade.
 The USDA highlighted lower use of the grain than last year over the June-to-August period, flagging that "disappearance is 1.94bn bushels, compared with 2.16bn bushels in the same period last year".
Stocks estimates are viewed as particularly price sensitive in commodity markets, with larger supplies seen limiting the need for buyers to pay up....MORE
We've been posting on this price weakness since  December 2012: 
Corn Hammered Limit Down on Stocks/Intentions Report
Corn: Deutsche sees potential for price below $4
Macquarie Calling For Corn in the Low $4's 
4 Reasons Why Corn Could Get Cheaper Still
Corn Futures Resume Normal Service, Collapse
Iowa State's Worst Case Corn Prices: $2.89 By 2017

And many more. It's almost depressing how monotonic the declines have become.