Grains, Soybeans Plunge on revised USDA Forecasts

Food , Soybaens Jan 12, 2012 No Comments

USDACorn and Wheat prices plunged the most in three months, while soybeans slid, after an increase in stockpile forecasts by the U.S. government eased concern that shortages will inflate prices for food and biofuels.

Inventories of corn in the U.S., the world’s top grower and exporter, may total 846 million bushels before this year’s harvest, 12 percent more than analysts expected, a U.S. Department of Agriculture report showed today. The 2011 crop totaled 12.358 billion, above a December forecast, while global output will be a record for a fifth straight year. World wheat reserves will rise to the highest since 2000, the USDA said.

Corn futures for March delivery tumbled the 40-cent limit, or 6.1 percent, to settle at $6.115 a bushel at 1:15 p.m. on the Chicago Board of Trade. That’s the biggest drop since Sept. 30. Soybean futures for March delivery fell 1.7 percent to $11.825 a bushel on the CBOT, after touching $11.50, the lowest since Dec. 21.

via Grains, Soybeans Plunge on USDA Forecasts – Bloomberg.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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