Corn prices and the commodity-related exchange traded funds plunged Thursday on a double whammy of expanding stockpiles and increased planting despite an oversupplied market.
The Teucrium Corn Fund (NYSEArca: CORN) fell 5.0% Thursday as CBOT corn futures declined 4.5% to $3.505 per bushel. CORN is down 0.6% year-to-date and 18.6% lower over the past year.
The falling corn prices is dragging down broader agriculture-related exchange traded products on Thursday as well. The PowerShares DB Agriculture Fund (NYSEarca: DBA), which includes 12.5% corn, dipped 0.9%. The ELEMENTS Rogers International Commodity Index Agriculture Total Return ETN (NYSEArca: RJA), which has 13.6% corn, fell 0.5% and iPath Bloomberg Grains Subindex Total Return ETN (NYSEArca: JJG), which includes 45.6% corn, decreased 2.2%.
Corn prices plunged Thursday after the U.S. Department of Agriculture calculated that U.S. farmers would sow 93.6 million corn acres, compared to 88 million last year and analysts’ forecasts of 90.05 million acres, reports Jesse Newman for the Wall Street Journal.
Moreover, the agency also revealed that corn inventories on Mach 1 totaled 7.807 billion bushels, compared to 7.750 billion bushels for the same period last year.
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