The Teucrium Corn Fund (NYSEArca: CORN) saw a modest intraday pop after the USDA unexpectedly lowered its 2014 corn crop yield forecast.
The USDA lowered its 2014 corn forecast to 173.4 bushels per acre from last month’s outlook of 174.2 bushels per acre. Traders expected the USDA to say corn yields would check in at 175.2 bushels per acre.
“Projected U.S. season-average prices for corn were raised by 10 cents per bushel, to a midpoint of $3.50. USDA’s fourth round of 2014 crop estimates mostly reflected fine tuning, though, with a hearty dose of harvested data to inform the agency’s estimates,” reports Ros Kransy for The Western Producer.
Shares of CORN are up nearly 1.7% at $26.17 and earlier touched an intraday high of $26.48. Corn futures opened lower Monday as traders expected the USDA report to reflect ample supply. On Sunday, Morgan Stanley “cut its estimate for corn to $3.90 a bushel in 2014-2015 from $4.35 in October,” according to Bloomberg.
Goldman Sachs recently forecast corn to tumble to $3 per bushel in the coming months.