Source: University of Illinois
Corn prices have been moving higher since June 30 when the USDA revealed smaller stocks and fewer planted acres than expected, according to Darrel Good, agricultural economist, University of Illinois. December 2010 corn futures have increased about $1.00 per bushel and the spot cash price of corn in central Illinois has increased $.90, to a marketing year high of $3.925 on August 27.
Price increases following the August 12 USDA Crop Production report showing prospects for a record large harvest were driven primarily by expectations of strong demand for corn. Even with record production, the USDA forecast a decline in stocks during the 2010-11 marketing year and a higher average farm price than experienced for the year just ending. Those strong demand prospects remain in place. A continuation of high livestock prices and increasing ethanol prices point to strong domestic demand for the next several months. Current corn prices are not high enough to suggest a slowing of domestic consumption.Original news release