Corn and grains exchange traded funds were Thursday’s steepest decliners after the U.S. Department of Agriculture forecast inventories will be higher than expected.
Corn and wheat prices fell the most in three months, Bloomberg reported.
“There is plenty of supply right now, especially wheat on a global basis,” said Alex Bos, a grain strategist at Macquarie Group, in the report. “Usage for corn and soybeans in the last quarter was much slower than expected by most people.”
Teucrium Corn Fund (NYSEArca: CORN) fell 6% at last check Thursday while iPath Grains ETN (NYSEArca: JJG) declined 5%.
The USDA estimated that corn and soybean stocks will be much higher at the end of this marketing year than traders had predicted after a solid harvest, Reuters reported.
“It was pretty much negative across the board,” said Mark Schultz, an analyst at Northstar Commodities. “The biggest shocker is that the corn crop ended up getting larger, not smaller.”
Teucrium Corn Fund
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.