Perhaps the bigger news was the 17% drop in corn stockpiles. Stocks were at their lowest point in nine years as a result of the drought in corn-producing parts of the country. Corn consumption is forecast to rise through the end of the 2012-2013 crop year on demand for the grain to use as cattle feed. Corn exports are not expected to rise this year.
Cash corn prices are expected to average $7.40 a bushel in the current year, the same level as last month’s report, but up more than $1 a bushel compared with a year ago.
Higher costs will hit food producers like cereal makers General Mills Inc. (NYSE: GIS), poultry and hog producers like Smithfield Foods Inc. (NYSE: SFD) and Sanderson Farms Inc. (NASDAQ: SAFM), and ethanol producers like Archer Daniels Midland Co. (NYSE: ADM).
Corn prices spiked to nearly $7.10 a bushel after the report was released.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
