How low will commodity markets go?

The Messenger
August 19, 2012
By DARCY DOUGHERTY MAULSBY, yettergirl@yahoo.com , Messenger News

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.

Read more