Teucrium Corn Fund (NYSEArca: CORN) plunged 6% on Thursday following a government report that U.S. farmers intend to plant the biggest crop since 1936.
The corn ETF was selling off on heavy volume after the USDA estimated farmers will plant 97.3 million acres of corn this year. Corn was limit down in Chicago.
“The biggest surprise in this report is the higher-than-expected corn stocks and the smaller-than-expected soybean acreage number,” said Al Kluis, Kluis Publishing analyst, in an Agriculture.com report.
“Inventories of corn on March 1 fell to a nine-year low of 5.399 billion bushels in the U.S., the world’s biggest grower and exporter, mostly because last year’s drought cut output,” Bloomberg News reports. “While that’s down 10% from a year earlier, analysts in a Bloomberg survey were expecting a drop to 4.995 billion.”
It was the biggest daily drop in corn prices in nearly a year.