In something of a surprise today, corn prices gave back nearly all the gains they made in August, closing at the Chicago Board of Trade at $8.13/bushel. That’s a 12% drop in the last week and a 7% drop from the four-week average.
The blame (or credit, depending on one’s point of view) goes to lower-than-expected exports. In short, the high price for U.S. corn has stifled demand, at least from countries that import corn from the U.S.
Today’s news doesn’t really change the calculus for the next few months. Corn production will be significantly lower this year and demand, particularly from ethanol producers, is expected to continue at its current level.
It is possible — even likely — that ethanol makers have already bid up the price of corn in order to guarantee their supply. Government-mandated production levels guarantee ethanol producers a profit, no matter what price they pay for corn. When Congress returns from its August recess, expect some debate over the ethanol mandate, but don’t expect the mandate to be suspended without a fearsome struggle.
Paul Ausick
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
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
