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Affordable corn making a return?

Published on 26 July 2013

Just checked out Corbitt Wall's latest news market report from the Livestock Grain & Market News office of USDA. And the official word is looking good for many cattle feeders. The price of corn has taken a turn back to earth.

Regional corn markets, in addition to sales on the CME index, are hitting lower numbers - and that couldn't come a moment too soon for feeders looking to squeeze out any margins this summer.

The Iowa Farmer Today commodity newsletter reported from CME analysts that sizable amounts of old crop sales on Thursday "ripped the cash market apart" leading to renewed effort Friday to help the markets. Meanwhile weather reports in the Midwest and Corn Belt are turning cooler, with every drop orf rain hitting ideal times for producers. Also the total corn crop is looking much healthier than last year's shortage.

September corn futures were down again Friday to contract lows of 4.92.

In his report, Wall said the Omaha corn market saw a drop from 6.73 to 5.76 in one week. "We're looking to see the biggest year-on-year drop in corn price in history of keeping record prices on corn," he explained.

Reuters is also reporting that more demand from ethanol plants in the coming months may solidify the floor for corn. And as Wall points out, for many cattlemen, the years of high corn prices have sparked some creativity and forced them to feed different products.

Watch the entire report here. end mark

 

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