Chicago Board of Trade March corn futures plunged 40 cents Thursday morning to a little over $6.11/bushel as traders reacted to an earlier crops report forecasting a smaller-than-expected drop in inventories.
US corn stocks are to fall 2 million bushels in January as increased export demand is expected to offset a rise in production, according to the World Agricultural Supply and Demand Estimate report released by the US Department of Agriculture.
"Basically, the report did not live up to expectations," said a market source, adding that the "market had already priced in the expectation, so now it's reacting."
As a jump in demand slightly outpaces a rise in supply, the projected total ending stocks for US corn in January edged down 2 million bushels from the December projection to 846 million bushels, according to USDA.
Thursday, January 12, 2012
Corn Limit Down
