(AP) - The government said Thursday that it expects no real change in next fall's tight corn supply, a factor that promises little relief from high food prices.
The U.S. Department of Agriculture estimated that there will be 846 million bushels of corn on hand at the end of the summer. The forecast was mostly unchanged from last month's estimate.
The surplus would satisfy demand for less than 25 days. A 30-day supply is considered healthy.
A low supply of corn pushed food prices higher last year because corn is a key ingredient in everything from soda to cereal to animal feed.
Still, corn futures fell by the maximum allowed by trading boards, to $6.12 per bushel. The reason was that traders had been expecting a decline in the monthly estimate.
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3 comments:
If corn is so valuable,why were there literally acres of it around the area that went unharvested and were ruined by the hurricane?
It makes you wonder if the "shortage" is planned.
they get paid not to plant
Since the ethanol subsidy has been ended, the food corn supply will go up.
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