Corn Production to Set Record, Food Prices Dropping
- Growth Energy calls last week’s World Agriculture Supply and Demand report’s the signature at the end of the food versus fuel myth.
If the report is accurate, the U.S. corn crop is going to break last year’s record production by a substantial amount.
With corn stocks predicted at the highest level since 2004, they are likely to pressure corn and other cereal prices well into the future. Corn used to produce ethanol, distiller’s grains and other co-products is projected at 5.125 billion bushels, while corn consumption for feed is estimated at 5.375 billion bushels.
- The Food and Agriculture Organization’s price index slipped for the sixth consecutive time, showing a drop in food prices to their lowest level since August of 2010.
Reuters reports all major food groups in the index for September dropped, except for meat. The index was led by a sharp decline in dairy prices.
The FAO says the current streak is the longest period of continuous falls since the late 1990s.