Corn prices fell after new numbers indicated a larger domestic stock than previously believed, according to a U.S. Department of Agriculture (USDA) report.
Prices fell 11% from only a week ago, to a low of $4.54¼ per bushel on Monday before stabilizing at $4.68. According to the USDA, however, lower forecast production (496 million bushels lower) and higher projected domestic disappearance leave ending stocks down sharply from last month, in spite of the revised 2010-2011 beginning stocks (which come to 322 million bushels more than originally estimated). While a 258,000-acre increase in harvest area has been reported, it is offset by a 6.7-bushel-per-acre reduction in yield.
Corn export numbers have been lowered by 100 million bushels with tighter available supplies, higher prices and increased competition from Argentina factoring in. Global supplies, however, are nearly unchanged, as the lower U.S. supplies are being offset by increased foreign coarse grain production.