Smaller Herds Drive Corn Prices Down, Along with Oversupply

Corn surpluses continue to plague the industry as an abundance of corn has flooded the market, while smaller herds has lowered demand.

The ongoing weight of oversupply continues to dominate the price of corn, and it makes you wonder why farmers continue to plant it at such high levels, knowing the supply is outstripping demand.

Corn inventories are at their highest levels since 1987, with an 11 percent increase for the year, reaching 7.694 billion bushels as of March 1.

For the year, expectations from the USDA are corn production should reach 13.131 bushels from the 2009 crop.