Corn flies, wheat slumps following USDA report


Corn (CORN +2.6%) moves sharply higher after the latest USDA projection has corn ending stocks at just 1.631B bushels vs. trade expectations for 1.861B. The agency pegs production at 13.93B bushels - few had expected this number to come in below 14B.

The wheat (WEAT -4.2%) numbers are more bearish however, with ending stocks of 608M bushels vs. expectations of 557M. Winter wheat seedings, though, are less than expected - 41.892M acres vs. 43.501M.

Soybean (SOYB +0.1%) ending stocks of 150B bushels are about inline with expectations.

Related ETFs: JJG, GRU

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Comments (2)
  • Moon Kil Woong
    , contributor
    Comments (13181) | Send Message
     
    Corn production remains way out of whack thanks to ethanol subsidies and reformulated gas requirements that gives privileged oil companies monopolies on gas so they can bilk consumers and pay off lobbyists and elected officials. As the US citizens come to realize this and continue to lobby against this corn demand will continue to wane along with corn production which provides US consumers an added benefit, no dramatic increases in food prices since the ethanol frenzy already doubled the cost of most fresh produce. Thank your local elected official for the price hike.
    11 Jan 2014, 12:03 AM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1642) | Send Message
     
    I still believe the error of "cheap food" has been over for a few years.

     

    Overpopulation and climate change are two fundamental forces making ag prices more volatile and keeping the overall price trend moving upward.
    11 Jan 2014, 11:58 AM Reply Like
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