Wow! December Corn futures finally opens with a 13.4 percent loss from Wednesday’s high to the opening low. Wheat has also been hammered. The WSJ reports,
As recently as June 9, USDA officials had guessed that excessive rain and widespread flooding this spring limited farmers to 90.7 million acres. But a separate USDA report also found supplies were bigger than expected in early June, signaling relief for food companies, livestock producers and consumers.
Interesting how food prices are tanking at the end of QE2. The USDA report gives the Fed an out that commodity prices are not driven by excess liquidity but by fundamentals. Let’s see how low they can take ’em and debate this point later. That’s what we like about the markets and economics: You (we) don’t know jack; and you (we) can’t prove jack!
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