The latest report on U.S. crop plantings for this year have sent corn prices tumbling more than 5% today and ended the day’s trading when prices fell the maximum allowable $0.40 a bushel. U.S. farmers intend to plant 97.3 million acres of corn this year, slightly more than last year and 6% higher than in 2011. If that happens, that will be the highest planted acreage since 102 million acres were sown in 1936.
The planned soybean planting totals 77.1 million acres, which is lower than the planted acreage last year and sharply below expected levels. Soybean inventories are high right now, at 999 million bushels, so the lower planting should help prop up prices.
As for corn, the massive planned planting comes in response to last year’s drought, even though current inventories of corn are higher than expected. The combined effect of the higher inventory level and the larger planned planned pounded corn prices today.
The Teucrium Corn fund (NYSEMKT: CORN) lost 6.5% today, now trading at $41.14 in a 52-week range of $35.23 to $52.71.