The news today showed that corn’s drop has been tied to dry weather allowing an accelerated planting to boost supply. Bloomberg even referred to a report from MDA showing a huge boost to the corn inventories in 2013. Corn futures were down 2.8% to $6.425 per bushel on above-normal trading this morning at the CBOT/CME in July, September, and December trading. The move is even down more than wheat futures being down 2% and soybean futures being down almost 1%.
Food inflation for feedstocks has been a serious thorn in the side of producers. These producers have had to pay for higher input costs to get chicken, hogs, and beef to market. Tyson Foods, Inc. (NYSE: TSN) is down over 4%, but that is because of a poor earnings report rather than due to a lower feedstocks price matrix on Monday.
Elsewhere, meat and prepared food companies are lower in sympathy with the market and with Tyson’s weak earnings report. Pilgrim’s Pride Corporation (NASDAQ: PPC) is up Hormel Foods Corporation (NYSE: HRL) is down 1.4% at $41.1 and Smithfield Foods, Inc. (NYSE: SFD) is down 0.9% at $25.40.
Teucrium Corn (NYSE: CORN) is down 3.8% at $40.05 against a 52-week range of $35.23 to $52.71.
Interestingly enough, shares of Pacific Ethanol, Inc. (NASDAQ: PEIX) are up over 2.5% but the stock is only at $0.2885 now that it is a small cap sub-$1 stock.
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