Speculation that China may boost its corn imports from the United States has offered support to corn prices, even though other factors point to weakening conditions going forward.
For now though, corn futures for May delivery climbed to $6.485 a bushel, a gain of 0.7 percent.
As for China, the assumption is it will want to build up diminished inventory before the corn season in that country begins.
At this time it's less expensive for China to import corn from the United States than to use its domestic supply.
Drought conditions in crucial corn-producing areas of South America make the United States a probable choice for Chinese corn imports.
Showing posts with label Corn Inventory. Show all posts
Showing posts with label Corn Inventory. Show all posts
Monday, February 27, 2012
Thursday, February 9, 2012
Corn Stockpile Estimates Cut by USDA for 2012
Projections for corn stockpiles in the United States has been lowered by the U.S. Department of Agriculture for 2012.
The downwardly revised U.S. corn stockpile estimates come from the continuing dry weather in South America, especially Argentina, which will probably result in inventories being down because of exports going up as countries gravitate to the American corn supply to make up for the shrinking South American corn yield.
Officials at the USDA slashed expected 2012 domestic corn inventory to 801 million bushels, a drop of 5.3 percent.
Argentina corn production estimates were cut by the USDA to 22 million metric tons, a decline of 15 percent. Brazil, which analysts had believed would also have corn production estimates lowered by the USDA, was kept the same, although that could be downwardly revised as the impact of weather conditions on the corn yield are clearer.
Since the middle of December, corn prices have climbed about 10 percent, in response to the first news reports dry weather was having a significant impact on the South American corn crop.
The second-largest producer of corn in the world, behind the United States, is Argentina.
The downwardly revised U.S. corn stockpile estimates come from the continuing dry weather in South America, especially Argentina, which will probably result in inventories being down because of exports going up as countries gravitate to the American corn supply to make up for the shrinking South American corn yield.
Officials at the USDA slashed expected 2012 domestic corn inventory to 801 million bushels, a drop of 5.3 percent.
Argentina corn production estimates were cut by the USDA to 22 million metric tons, a decline of 15 percent. Brazil, which analysts had believed would also have corn production estimates lowered by the USDA, was kept the same, although that could be downwardly revised as the impact of weather conditions on the corn yield are clearer.
Since the middle of December, corn prices have climbed about 10 percent, in response to the first news reports dry weather was having a significant impact on the South American corn crop.
The second-largest producer of corn in the world, behind the United States, is Argentina.
Saturday, April 10, 2010
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.
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.
Wednesday, March 10, 2010
Huge Corn Harvest Cuts Prices
Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Thursday, June 4, 2009
Corn News | Corn Production and Ending Stocks Projections Lowered by Analysts
Corn News
Ahead of the soon to be released USDA supply and demand report, McHenry, Illinois based analysts Allendale Inc. expect the Ag Department to lower its production and new crop ending stocks estimates for corn.
Allendale sees 2009/10 corn stocks at 1.015 billion bushels and production at 11.935 billion bushels because of delayed planting. Allendale also sees the USDA cutting the average yield estimate by 2 bushels per acre. In May, the USDA put corn production at 12.090 billion bushels and new crop stocks at 1.145 billion bushels. Allendale pegs old crop corn ending stocks at 1.610 billion bushels, up 10 million from May.
Allendale expects USDA to leave the soybean production guess unchanged from May at 3.195 billion bushels, but sees old crop stocks at 99 million bushels due to strong demand; the USDA's May 2008/09 ending stocks estimate was 130 million bushels. Also, Allendale sees 2009/10 soybean stocks at 243 million bushels, compared to 230 million in May's update.
2009 U.S. wheat production is projected at 1.993 billion bushels, compared to May's estimate of 2.026 billion. Winter wheat is placed at 1.492 billion bushels, with hard red at 864 million, soft red at 417 million and white winter at 211 million. In May, the USDA had wheat production at a total of 2.026 billion bushels, with the winter crop at 1.502 billion, hard red at 871 million, soft red at 422 million and white at 208 million.
The USDA will also be issuing updated world supply and demand figures. The reports are due out Wednesday, June 10 at 7:30 AM Central.
Corn News
Ahead of the soon to be released USDA supply and demand report, McHenry, Illinois based analysts Allendale Inc. expect the Ag Department to lower its production and new crop ending stocks estimates for corn.
Allendale sees 2009/10 corn stocks at 1.015 billion bushels and production at 11.935 billion bushels because of delayed planting. Allendale also sees the USDA cutting the average yield estimate by 2 bushels per acre. In May, the USDA put corn production at 12.090 billion bushels and new crop stocks at 1.145 billion bushels. Allendale pegs old crop corn ending stocks at 1.610 billion bushels, up 10 million from May.
Allendale expects USDA to leave the soybean production guess unchanged from May at 3.195 billion bushels, but sees old crop stocks at 99 million bushels due to strong demand; the USDA's May 2008/09 ending stocks estimate was 130 million bushels. Also, Allendale sees 2009/10 soybean stocks at 243 million bushels, compared to 230 million in May's update.
2009 U.S. wheat production is projected at 1.993 billion bushels, compared to May's estimate of 2.026 billion. Winter wheat is placed at 1.492 billion bushels, with hard red at 864 million, soft red at 417 million and white winter at 211 million. In May, the USDA had wheat production at a total of 2.026 billion bushels, with the winter crop at 1.502 billion, hard red at 871 million, soft red at 422 million and white at 208 million.
The USDA will also be issuing updated world supply and demand figures. The reports are due out Wednesday, June 10 at 7:30 AM Central.
Corn News
Monday, January 12, 2009
Corn Plunges on Department of Agriculture's Projection of Larger Supplies
Corn fell to the lowest level allowd by the Chicago Board of Trade after the u.S Department of Agriculture said supply will be larger than originally projected in December.
Consequently corn futures dropped by the 30-cent limit to $3.8075 a bushel on the CBOT. That's closing in on the lowest price in two years experienced on December 5 of $3.055.
Corn inventories in the U.S. will come in at 1.79 billion bushels on August 31, a huge 21 percent more than the 1.474 billion bushels expected in December.
Estimates for the 2008 corn crop were also revised upward, adding another 0.7 percent to the total, while also cutting its projections for exports as well. As expected, production for animal feed and ethanol were also revised downward.
In 2007, corn in the U.S. was valued at $52.1 billion, the largest crop in the country.
Globally, corn levels will also increase from Decembers estimate, growing by 9.9 percent or 136 million tons.
Consequently corn futures dropped by the 30-cent limit to $3.8075 a bushel on the CBOT. That's closing in on the lowest price in two years experienced on December 5 of $3.055.
Corn inventories in the U.S. will come in at 1.79 billion bushels on August 31, a huge 21 percent more than the 1.474 billion bushels expected in December.
Estimates for the 2008 corn crop were also revised upward, adding another 0.7 percent to the total, while also cutting its projections for exports as well. As expected, production for animal feed and ethanol were also revised downward.
In 2007, corn in the U.S. was valued at $52.1 billion, the largest crop in the country.
Globally, corn levels will also increase from Decembers estimate, growing by 9.9 percent or 136 million tons.
Wednesday, October 1, 2008
Corn in Slight Rebound after Plunging Yesterday
Corn futures are enjoying a slight rebound today after falling by almost 5 percent in Tuesday trading.
On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.
Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.
Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.
Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.
On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.
Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.
Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.
Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.
Tuesday, August 19, 2008
Corn News and Updates
US corn rallies in late trading
CBOT Corn Review
Corn prices gain 2.05% in Chicago
Farmers using biotech seed may pay less insurance
Farmers always adapt to meet demand for corn
USDA: Corn production down from last year
USDA Approves Syngenta and John Deere for Broadened Biotechnology Endorsement for Corn Crop Insurance
Half Corn Crop At Dough Stage
India corn futures lower on US corn
CBOT Corn Review
Corn prices gain 2.05% in Chicago
Farmers using biotech seed may pay less insurance
Farmers always adapt to meet demand for corn
USDA: Corn production down from last year
USDA Approves Syngenta and John Deere for Broadened Biotechnology Endorsement for Corn Crop Insurance
Half Corn Crop At Dough Stage
India corn futures lower on US corn
Tuesday, July 29, 2008
Corn Futures Increase on Weather Concerns, Export Demand
Noting that higher temperatures could cause problems in the corn yield, the price of corn futures increased today, closing up by 12 cents to $5.94 a bushel. December corn also increased by a little over 12 cents, finishing the session at $6.13 1/2.
The concern is over how well the corn pollinates during this crucial time, as too warm weather could hamper the yield results.
Even with the strong response of buyers, the warm weather isn't anticipated to stay too long, and hopefully will just be a temporary blip.
Drew Lerner, an agricultural meteorologist at World Weather Inc. said, "We shouldn't have more than just a few days of stressful conditions in the eastern part of the corn belt."
Other factors were concerns by end-users that other variables like a late growing season, early frost and increased export demands could impact them down the road, so they wanted to lock inventory in so they don't lose out later in the year.
Sunday, July 20, 2008
Corn Prices Come Crashing Down to Earth, Lost Over 11% in Week
Even though the flooding in June wiped away some cornfields, the warm weather after the flood receded has helped corn surge back, resulting in the steep drop in price.
December delivery for corn dropped 21 cents to finish at $6.29 a bushel on the CBOT. That's the lowest price point since May 30.
The flooding had driven up prices in June to as high as $7.96 a bushel; more than a 20 percent increase.
The specific corn-related reasons for the decline the good weather is expected to help the corn to pollinate great during the July 20 to July 30 period. That's the most critical period for the pollination period, which determines what the extent of the corn yield will be.
Another reason for the decline in prices is the decreased demand, which has offset the lower production levels.
The year-end corn production is projected at 11.7 billion bushels by the USDA. That's about 20 million bushels less than its June forecast.
December delivery for corn dropped 21 cents to finish at $6.29 a bushel on the CBOT. That's the lowest price point since May 30.
The flooding had driven up prices in June to as high as $7.96 a bushel; more than a 20 percent increase.
The specific corn-related reasons for the decline the good weather is expected to help the corn to pollinate great during the July 20 to July 30 period. That's the most critical period for the pollination period, which determines what the extent of the corn yield will be.
Another reason for the decline in prices is the decreased demand, which has offset the lower production levels.
The year-end corn production is projected at 11.7 billion bushels by the USDA. That's about 20 million bushels less than its June forecast.
Thursday, May 1, 2008
Philippine Corn Output Increases 27.6 Percent in 1st Quarter
Corn production in the Philippine's in the first quarter gained 27.6 percent to reach 2.17 million metric tons. In the same season last year production reached 1.70 million metric tons.
Agriculture Assistant Secretary Dennis Araullo said output exceeded expectations of the projected 2.14 million metric tons.
“More farmers planted corn in the last quarter of 2007. The total area harvested for corn reached 711,000 hectares,” Araullo said.
The best areas of production were the provinces of Isabela and Mindanao.
With the unexpected high results, if the second quarter holds up to expectations, the first half would reach 3.34 million metric tons, which would be an increase of 21 percent. Last year the first half produced 2.75 million metric tons.
If corn production keeps at this pace, the yearly output would reach 7.384 million metric tons, bringing the self-sufficiency level of corn for the Philippines to 94 percent.
Assuming the projections are close to accurate, yellow corn would reach 4.647 million and white corn 2.737 million.
Agriculture Assistant Secretary Dennis Araullo said output exceeded expectations of the projected 2.14 million metric tons.
“More farmers planted corn in the last quarter of 2007. The total area harvested for corn reached 711,000 hectares,” Araullo said.
The best areas of production were the provinces of Isabela and Mindanao.
With the unexpected high results, if the second quarter holds up to expectations, the first half would reach 3.34 million metric tons, which would be an increase of 21 percent. Last year the first half produced 2.75 million metric tons.
If corn production keeps at this pace, the yearly output would reach 7.384 million metric tons, bringing the self-sufficiency level of corn for the Philippines to 94 percent.
Assuming the projections are close to accurate, yellow corn would reach 4.647 million and white corn 2.737 million.
Friday, April 25, 2008
Kentucky Corn Planting Behind Schedule as Rains Continue to Hinder
Kentucky corn farmers are scrambling to get their corn fields planted this week, as wet weather has continued to hamper the start of the seasonal planting.
"They're in the `go' mode right now," Kenny Perry, agricultural extension agent in Graves County in western Kentucky, said Thursday. "They're excited to finally be getting into the fields."
Across the state, only 11 percent of acreage intended for corn has been planted, that's in contrast to last year's 39 percent and the average of 47 percent over the last five years on the same date. That's according to the most recent report from the National Agricultural Statistics Service's Kentucky field office.
If Kentucky weather can remain dry, the season for corn should be ok, as there is still a couple weeks to plant without experiencing the lower yields expected if a later sowing results in summer heat influencing the pollination of the corn.
The option for Kentucky farmers would be to sow soybeans, but that isn't without risks either, as the 2007 drought has resulted in supply problems for soybean seeds. Most of those problems are connected to varieties offered, more than being able to attain some type of soybean seed.
This is the short window where major decisions have to be made whether to go ahead with corn or switch to soybeans; much of what farmers in other states around the country are facing.
Wednesday, April 16, 2008
U.S. Agriculture Secretary Ed Schafer Says No Change in Biofuels Policy
The criticism and impact of the biofuels policy in the U.S. and Europe is causing food riots and protests across the world, as the prices of food surge; mostly on the continuing price increases of corn.
For U.S. Agriculture Secretary Ed Schafer to say there will be no shift in the subsidy of corn in the U.S. and it will be business as usual with ethanol, is irresponsible at least, and, as some are calling it, "a crime against humanity."
In the U.S. alone, ethanol is expected to consume about 25 percent of the corn crop, which is estimated at 13.1 bushels this year.
Now the uncertainty of heavy rains in respect to planting season, leaves no room for error in the U.S. If anything comes along to disrupt the season, corn prices would go through the roof. They're already expected to continue rising throughout 2008.
Investors in Pilgrim's Pride Corp (NYSE:PPC) were ecstatic this week, as the company announced they were cutting production based on high feed costs for the second time in the last 30 days. The reduced supply will cause meat prices to go up, adding to the other effects of corn on the market.
It's possible that the entry of goverments into the biofuels business may be one of the most obivous and public mistakes they've made.
Not too long ago, after 30 million deaths in Africa, DDT was finally reintroduced into the continent to battle mosquitos, which spread malaria to the inhabitants. It was done very quietly, as not to reveal the outrageous results and consequences of another irresponsible government program.
For U.S. Agriculture Secretary Ed Schafer to say there will be no shift in the subsidy of corn in the U.S. and it will be business as usual with ethanol, is irresponsible at least, and, as some are calling it, "a crime against humanity."
In the U.S. alone, ethanol is expected to consume about 25 percent of the corn crop, which is estimated at 13.1 bushels this year.
Now the uncertainty of heavy rains in respect to planting season, leaves no room for error in the U.S. If anything comes along to disrupt the season, corn prices would go through the roof. They're already expected to continue rising throughout 2008.
Investors in Pilgrim's Pride Corp (NYSE:PPC) were ecstatic this week, as the company announced they were cutting production based on high feed costs for the second time in the last 30 days. The reduced supply will cause meat prices to go up, adding to the other effects of corn on the market.
It's possible that the entry of goverments into the biofuels business may be one of the most obivous and public mistakes they've made.
Not too long ago, after 30 million deaths in Africa, DDT was finally reintroduced into the continent to battle mosquitos, which spread malaria to the inhabitants. It was done very quietly, as not to reveal the outrageous results and consequences of another irresponsible government program.
Friday, April 11, 2008
Corn News Weekend Roundup
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Corn Falls on Improved Weather
Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.
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Corn market gains more uncertainty in April
Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.
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CBOT Corn Review: Down On Profit-Taking, Weather Concerns
U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.
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Profit taking weigh down corn futures
U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs
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S Korea's Nonghyup buys 165,000 tonnes of US corn
South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.
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Corn Futures Expected To Continue To Grind Higher
In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.
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Texas A&M report clears corn from food price inflation
The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.
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Corn Falls on Improved Weather
Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.
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Corn market gains more uncertainty in April
Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.
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CBOT Corn Review: Down On Profit-Taking, Weather Concerns
U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.
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Profit taking weigh down corn futures
U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs
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S Korea's Nonghyup buys 165,000 tonnes of US corn
South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.
=====
Corn Futures Expected To Continue To Grind Higher
In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.
=====
Texas A&M report clears corn from food price inflation
The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.
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Friday, April 4, 2008
Weekend Corn News Roundup
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CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking
Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.
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Corn Looks to Trend Higher
On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.
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In The Cattle Markets: Prospective Plantings Will Not Help Feeders
It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.
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Japanese food processor to accept GM corn
Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.
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CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking
Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.
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Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls
Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.
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Monsanto to build seed corn facility near Independence
On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.
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CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking
Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.
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Corn Looks to Trend Higher
On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.
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In The Cattle Markets: Prospective Plantings Will Not Help Feeders
It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.
=====
Japanese food processor to accept GM corn
Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.
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CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking
Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.
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Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls
Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.
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Monsanto to build seed corn facility near Independence
On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.
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Thursday, April 3, 2008
Corn Settles at $6, after Record $6.025
The story for corn continues to be the projected supply problems, and the resultant surge in prices. That story continues, as corn broke another record today, reaching $6.025 a bushel before settling to $6. Corn has already increased by 30 percent this year, as demand increases.
This follows yesterday's prices, which just fell short of the $6 a bushel mark.
"It's a demand-driven market and we may not be planting enough acres to supply demand, so that adds to the bullishness of corn," said Elaine Kub, a grains analyst with DTN in Omaha, Neb.
We also talked about the decreasing acreage being planted in corn this year, which have dropped by about 8 percent across America.
The wet weather continues to wreak havoc in the industry as well, with plantings not only being put off, but growers talking about abandoning corn planting this year if it continues on too long.
The ethanol industry continues to cause problems for corn, as it gobbles up valuable resources; not only on an unproven alternative fuel, but one that may not to be grown profitably at these prices. That's what you get for government mandates and interference.
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