Center for Advanced BioEnergy Research, University of Illinois at Urbana-Champaign

Tuesday, August 21, 2012

How low will commodity markets go?

The Messenger
August 19, 2012

Rationing demand called, good for this kind of market

The impact of the U.S. Department of Agriculture's Aug. 10 crop production report was expected to come down to demand, and the report didn't disappoint.

"It looks like we're seeing the initial movement of a demand slowdown in all three major categories, including feed, ethanol and exports," said Darin Newsom, a DTN senior analyst. "This is exactly what has to happen in this type of market."

Even so, the report painted a bleak outlook for supplies. According to USDA's projections, U.S. corn production for 2012 is forecast at 10.8 billion bushels, down 13 percent from 2011's 12.4 billion bushels and the lowest production since 2006.

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1 comment: said...

Whats the reason behind this low production.

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