Seeking Alpha

Corn slides to 3-year low after bearish stocks data

  • Corn (CORN -2.4%) and Soybeans (SOYB -3.2%) tumble - with corn hitting a 3-year low - after the USDA reports estimated corn stocks of 824M bushels, off 17% from a year ago, but far higher than trade estimates for 687M. Bean stocks are estimated at 141M bushels, also off 17% from a year ago, but 13% above estimates. Stocks still remain low, but these are old crop numbers, and forecasters are looking forward to a big crop this fall.
  • Wheat (WEAT -2.7%) stocks of 1.85B bushels were slightly below expectations.
  • Lower-than-expected feed usage and export demand were behind the big corn number - high prices had pig farmers substituting corn for wheat.
  • Relevant grain ETFs: JJA, RJA, AGF, DBA, FUD, UAG, DAG, AGA, ADZ, JJS, TAGS, USAG, RGRA, JJG, GRU.
Comments (2)
  • AGA, AGF, ADZ all trading at 80% discounts to NAV. Seems like buys at these levels. Any thoughts on this?
    30 Sep 2013, 07:22 PM Reply Like
  • So much for ethanol usage driving corn prices. Why aren't food prices dropping?
    30 Sep 2013, 09:53 PM Reply Like
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