FarmPolicy

May 19, 2019

Ag Economy; Policy Issues; Regulations; Food Security; and, Political Notes

Agricultural Economy

Jacob Bunge reported yesterday at The Wall Street Journal Online that, “U.S. grain and soybean futures closed sharply lower Wednesday—with corn sinking to the lowest level in more than four years—after government and private-sector reports reinforced expectations for massive harvests ahead.

“Corn futures for September delivery fell 4.1%, the biggest decline on a percentage basis since June 30, pressured by reports from Allendale Inc. and Lanworth estimating high yields that may translate to larger U.S. grain stockpiles, analysts said.

“September corn dropped 14½ cents to $3.41¼ a bushel on the Chicago Board of Trade, marking the lowest closing price since June 29, 2010. December corn futures, the most-active contract by volume, dropped 11¾ cents, or 3.2%, to $3.52 a bushel.”

Mr. Bunge added that, “Soybean and wheat futures also declined Wednesday as crop-yield forecasts soothed concerns over weather-related threats to some U.S. soybean fields, and a strengthening U.S. dollar added uncertainty to export prospects for the domestic wheat crop.”

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