Corn prices take a dive on prospect of big US harvest
Saturday 02 July 2011
Corn prices fell sharply yesterday on news that US farmers had planted near record quantities of the staple.
The US Department of Agriculture also reported higher stock levels, and Goldman Sachs slashed its forecast for corn and wheat prices by 26 per cent. Corn and wheat will be at $5.90 a bushel in three months, down from estimates of $8, according to Goldman Sachs analysts. Corn futures in Chicago fell by their largest margin since last November, down 30 cents – the maximum price change allowed by futures exchanges – to about $6.21 a bushel. It now stands at a three-month low. Corn hit a high of $7.99 a bushel in June.
The USDA said yesterday that America's farmers planted 92.3 million acres of corn this year, the second-highest figure since 1944. Much of this has been at the expense of soya. Stockpiles stand at 3.7 billion bushels, 12 per cent higher than forecasts.
Recent record harvests in southern Africa have also helped calm fears about further jumps in food prices, at least in the short to medium term. Lower corn costs will help livestock farmers faced with high feed prices, and generally ease one of the main drivers of global inflation.
The easing in food price inflation will reduce the pressure on household budgets in the world's poorest nations, something that has helped trigger unrest in the Middle East and North Africa.
Corn prices are up 74 per cent over the past year , wheat by 69 per cent, soya beans by 36 per cent and sugar by 21 per cent.
- 1 Jennifer Lawrence scores first UK top 40 single with Hunger Games track 'The Hanging Tree'
- 2 Shia LaBeouf claims he was raped during #IAMSORRY art installation performance
- 3 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
- 4 Scientists predict green energy revolution after incredible new graphene discoveries
- 5 Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Kim Jong-un 'in dire need of allies' within his own government as younger sister appointed to senior role
Black Friday UK: The shops hit by chaos and violence as shopping frenzy sweeps country
Scientists predict green energy revolution after incredible new graphene discoveries
Russell Brand: 'Katy Perry? I don’t know who that is'
Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Obama: The only people with the right to object to immigration are Native Americans
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ukip mocked after mistaking Westminster Cathedral – for a mosque
David Cameron sets out immigration reforms: We should distrust Ukip and their 'snake-oil of simple solutions'
iJobs Money & Business
Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...
£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...
£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...
£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...