SINGAPORE: Corn prices have dropped the most this year among feedgrains including sorghum and barley, as U.S. farmers gear up to harvest their biggest crop in history.
The most-active corn contract on the Chicago Board of Trade has given up 8.5 percent this year, the market’s sixth year of decline.
That compares with a fall of 4.6 percent in U.S. sorghum and a gain of 4.1 percent in Brazilian corn . Australian feed barley has risen close to 42 percent this year, while U.S feed-grade wheat is up nearly 8 percent.
“U.S. corn is the cheapest feedgrain in the world at the moment as we move close to the harvest,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. “But I think further downside in corn prices is limited.”
U.S. corn is quoted at $162 a tonne, free on board (FoB) at the Gulf terminals, while Brazilian corn is offered at $168 a tonne FoB. Sorghum is being priced at $164 a tonne FoB and Australian feed barley is at $309 a tonne.
The Pro Farmer advisory service last week projected 2018 U.S. corn yield of 177.3 bushels per acre, below the USDA’s forecast of 178.4, but still a record high.