Friday the U.S. Department of Agriculture announced that stockpiles were 25% higher that previously expected. This caused the Corn market to limit down (40 Cents) to $5.925 per bushel. (During the week ending September 30th) In turn this caused a tumble down effect in the Wheat and Soybean market of 6.7% and 4.1% respectively. The U.S. produced 38% of the world’s corn last year.
While this news does not come as too big of surprise to most of the experienced traders it is a needed sign for relief in with the food production companies. Which will ultimately be a good sign for the consumer.
Corn and all of the products that are created with it have become a staple in the US and thus when it should be a leading indicator for food prices in the coming future. As consumers we can all hope that the trend is downward. Only time will tell, but as of now, the trend is in the consumers favor.