A new U.S.D.A. estimate released just this morning, is likely to drive the price of corn down lower. U.S.D.A. analysts now estimate there’s about 1.13 billion bushels of corn from last year’s harvest in storage right now than there was a year ago.
That figure is much higher than the previous U.S.D.A. figure. It means the corn being stored at grain elevators and on farms in bins or silos could make up for a lower 2011 harvest. Corn prices had surged over the past year because of concerns the supply would not match demand.
However, corn prices have fallen about $1.50 over the past month.