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Corn Futures Near Three-Year Low, Falling “Around 32% So Far in 2023”

Bloomberg writer Kim Chipman reported on Friday that, “Corn futures extended losses, trading near a three-year low, on forecasts that the US farmers will collect a record harvest this season.

“Corn Drops to Trade Near Three-Year Low on Record US Crop,” by Kim Chipman. Bloomberg News (November 10, 2023).

“The most widely grown American crop is seen totaling 15.234 billion bushels, above analyst estimates and surpassing 2016’s previous record of 15.148 billion, US Department of Agriculture showed Thursday.

Crop Production. USDA- National Agricultural Statistics Service (November 9, 2023).

“Ample supplies in the top global producer means focus now shifts to the upcoming crop in key producer Brazil as well as global demand for US corn.”

Also Friday, Dow Jones writer Kirk Maltais reported that, “Corn for December delivery fell 0.9%, to $4.64 1/4 a bushel, on the Chicago Board of Trade on Friday, with trading limited after the USDA reported a 1.9-bushels-per-acre uptick in average crop yields.”

Bloomberg writer Michael Hirtzer pointed out on Friday that, “Plentiful supplies and lower prices are welcome news for producers of poultry and biofuel, as corn is one of their biggest costs. They’re also likely to help keep a lid on food inflation, which has been moderating for months.

“Of course, the other side of the equation means belt-tightening for growers. With the increase in supply outpacing demand, the USDA expects farmers to receive lower average prices for the season.”

Friday’s article noted that, “The supply boost isn’t just happening in America. The USDA raised its corn-production forecast for Ukraine and Russia, and global corn reserves are seen climbing to a three-year high.

The world will be awash with the grain for some time to come.

Bloomberg writer Doug Alexander reported yesterday that, “American farmers produced a record crop even though there was relatively scant rainfall in parts of the Corn Belt and some of the hottest temperatures ever seen during the growing season. It shows that modern seed technology can still thrive in adverse conditions — something increasingly vital as the weather gets even more unpredictable and as the world’s population continues to grow.”

“Five Key Charts to Watch in Global Commodity Markets This Week,” by Doug Alexander. Bloomberg News (November 12, 2023).

And Reuters writer Peter Hobson reported today that, “Chicago corn futures on Monday hovered near three-year lows as the market absorbed last week’s U.S government forecast that farmers will produce the biggest corn crop on record this year.”

CBOT corn has fallen around 32% so far in 2023 and is headed for the biggest yearly decline in prices in a decade as a record harvest in Brazil moves the market closer to surplus,” the Reuters article said.

Keith Good Photo

Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.

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