The Rising Influence of Rising Affluence

[DewDiligence]

Corn, soybean prices fall on USDA production forecasts:

http://www.wsj.com/articles/corn-soybean-prices-drop-as-usda-boosts-supply-outlook-1439403298

Corn futures sank more than 5%, the biggest one-day percentage decline in nearly two years, while soybeans slid 6% and wheat dropped 3%.

The U.S. Department of Agriculture estimated that U.S. corn production would total 13.7 billion bushels on yields of 168.8 bushels an acre. The forecasts are the first of the growing season to be based on surveys of farmers and field observations, and they sharply exceeded analyst estimates of about 13.3 billion bushels on yields of 164.4 bushels an acre.

The projected corn crop would be the third largest in the U.S. after the record harvests of the past two years.

…The USDA estimated soybean production at 3.9 billion bushels on yields of 46.9 bushels an acre. Analysts had expected production to total 3.7 billion bushels on yields of 44.6 bushels an acre.

The last three seasons (including this one) have had great crop-growing weather in the US heartland.