Corn prices declined substantially over the past week. May
and December 2012 futures have declined by $.26 and $.22, respectively,
following the release of the USDA’s WASDE report on April 10.
Recent weakness in old crop prices started with the USDA’s
unchanged forecast of year-ending stocks of 801 million bushels. Following the
smaller-than-expected estimate of March 1 stocks revealed on March 30, the
market had anticipated that the April WASDE report would contain a larger
forecast of feed and residual use and a smaller forecast of ending stocks.
Additional price weakness has been attributed to weakness in the financial
markets associated with a slowdown in the Chinese economy and concerns about the
Spanish debt as well as prospects for increased corn acreage in China. New crop
prices continue to reflect the larger-than-expected planting intentions revealed
on March 30, an early start to the planting season, and the recent improvement
in soil moisture conditions in a large part of the Corn Belt. <Read More>
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