Tag Archives: corn

Bleak Estimates for Corn Yields and Grain Stocks for 2012

According to the Earth Policy Institute, drought conditions have generated bleak corn yield estimates for the remainder of 2012. Corn yields for September 2012 are estimated at 123 bushels per acre, which would make it the lowest yield since 1995. Compare this yield to the highest ever value of 165 bushels per acre, which was last reached in 2009.

As a consequence, the price of corn has increased significantly. It reached a record high of $8 per bushel in the corn futures market back in July, and has fluctuated around that price since then. Another consequence is the expected fall in global grain supplies. Supplies are expected to fall to 432 million tons, or 69 days of global consumption.

World Supply of Biggest Crops Decline and Food Prices Rise

The worst drought in fifty years has caused a decline in the stockpiles of crops such as corn, soybeans, rice and wheat, with the subsequent all-time increase in the prices of corn and soybeans. Good news for commodities investors.

The drought has also affected fuel and power production which, in turn, have a negative effect on food prices. Read more…

  1. Unfavourable weather behind the July rebound of the FAO Food Price Index – FAO Food Price Index [Food and Agricultural Organization of the United Nations]
  2. America’s disastrous corn harvest will hit world’s poor hardest [The Guardian]
  3. World food prices rising in response to drought damage in the US – Ole Hansen [TradingFloor.com]
  4. Global food reserves falling as drought wilts crops – Tony C. Dreibus and Elizabeth Campbell, Bloomberg [Futures Magazine]
  5. USDA slashes corn yield, production forecast – Bill Tomson [Market Watch]


U.S. Drought, Corn and Food Prices – July 24, 2012

  1. US drought could trigger repeat of global food crisis, experts warn – Suzanne Goldenberg (The Guardian)
  2. Europe Heat Wave Wilting Corn Adds to U.S. Drought: Commodities – Rudy Ruitenberg (Bloomberg)
  3. Vilsack: House must pass drought help in farm bill – David Pitt (Business Week)
  4. Grain markets weather driven but selling pressure builds | Price rise too far, too fast? Allendale Inc. (Futures Magazine)
  5. European debt worries drive down commodities, end record streaks for corn, soybeans – Associated Press (Washington Post)


U.S. Drought Threatens Crops and Cattle – July 18, 2012

  1. Drought dims U.S. farm economy hopes – Joshua Zumbrun and Mark Drajem, Bloomberg (Futures Magazine)
  2. Drought Worsens for Farmers and Ranchers – Jennifer Preston | The Lede (New York Times)
  3. Drought wreaking havoc on cattle, hog farmers – Jeff Caldwell (Agriculture.com)
  4. Huge Dramatic Photos Of The Drought That’s Devastating America’s Farmland – Mamta Badkar and Rob Wile (Business Insider)
  5. Here’s Every Product On The Planet That Has Corn In It [INFOGRAPHIC] – Rob Wile (Business Insider)

Corn and Drought Conditions – July 17, 2012

  1. STOCKS FALL, CORN SURGES: Here’s What You Need To Know – Sam Ro (Business Insider)
  2. DJ U.S. CORN: Trading Up On Drought, Worse Crop Condition Ratings – Dow Jones Commodities News (TradingCharts.com)
  3. Drought Likely to Hit You Hard in the Pocketbook – Seth Perlman (Wltx.com)
  4. U.S. Affected by Drought Conditions: Interactive Maps (U.S. Drought Portal)



Corn Prices on the Rise

Corn ending stocks for the US for 2010 are projected to be lower than corn demand for the same period, prompting a rise in corn prices. Corn prices increased about 55% for the June-November 2010 period. According to the Corn and Soybean Digest low crop yields explain the supply side. The demand side can be explained mainly by the increase of corn-derived ethanol production.

Maize (corn) - Monthly Price - Commodity Prices