The U.S. Department of Agriculture's prospective plantings report from Thursday says U.S. corn acreage this year could be the highest since 2013. These expectations would also indicate the third highest corn acreage in the U.S. since 1944.
Market analyst Mike Davey of FarmLink Marketing Solutions says the report is bearish, as world stocks are already well-supplied in corn.
"This (report) certainly was not well-received by the market place," he says. "Following the release of the report, corn futures dropped about 20 cents."
Futures recovered slightly by the end of the day, with corn for May closing down 15 and a half cents per bushel at the Chicago Board of Trade.
Davey doesn't think this reaction will be a flash-in-the-pan, but says Thursday's activity reflects a fair bit of spread trading.
Source : Portageonline