November 28, 2013
US corn prices drop toward three-year low
While US farmers closed in on a record harvest, corn prices fell back toward their lowest levels in more than three years.
According to a government report, farmers in the 18 most important corn-producing states have harvested about 95% of this year''s crop. The government estimated that the US will produce a record 35.5 million tonnes of corn this year.
Corn prices have slumped this year as traders and buyers anticipated a record crop. The price decline reversed a surge last year that pushed prices to a record after the crop was decimated by drought.
The price of corn for delivery in March fell US$0.0625, or 1.5%, to US$4.19 per .11 tonne. The grain''s price has fallen 40% this year and dropped as low as US$4.12 per .10 tonne last week, its lowest level since August 2010.
In Nebraska, the Department of Agriculture''s final weekly conditions report for the growing year showed 96% of the corn harvested, behind 100 last year but ahead of 90 average.
Soil moisture in most of the state was better than a year ago, before drought subsided. Topsoil moisture supplies rated 5% very short, 20 short, 75 adequate and zero surplus. Subsoil moisture supplies rated 12% very short, 31 short, 57 adequate and zero surplus.
Starting December 30 through March, crop condition reports will be monthly.
Sorghum harvest was 99% complete, behind 100 last year but ahead of 90 average.
Winter wheat condition rated 1% very poor, three poor, 25 fair, 63 good and eight excellent, well above year-ago levels.
Livestock water supplies rated 3% very short, 11 short, 85 adequate and one surplus.