Remember when corn prices hit all-time highs last summer as droughts plagued America's farms?
That's now a distant memory thanks to a return to normal temperatures and with it an expected record harvest.
"The corn crop is projected at 13.95 billion bushels, down from slightly above 14 billion bushels in last month’s report. Despite a decreased estimate, corn production is still on target for a record-setting year, if realized,” Agri-View's Jane Fyksen reported ag economist Todd Davis as saying
As a result, no commodity has performed worse this year — not even gold. Here's the chart from Oppenheimer's John Stoltzfus of YTD performance: corn is down -33%.
Corn prices are now at three-year lows, trading around $4.63/bu.
This time last year, they were around $8 per bushel.
Here's the chart:
The USDA will release its world agricultural supply and demand (WASDE) estimate at noon, and it's expected to add to bearish sentiment. Morgan Stanley's Bennett Maier says he projects a stocks print of 1.9 billion bushels, compared with 704 million during the same time last year.