Corn price falls on record crop forecast

Published on NewsOK Modified: May 9, 2014 at 2:31 pm •  Published: May 9, 2014
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Corn dropped Friday after the government forecast a record crop for this year.

The price of corn for July delivery fell 9 cents, or 1.7 percent, to $5.08 a bushel.

The loss pared this year's gain for corn to 20 percent. The price of the grain has climbed this year as planting was delayed by unseasonably cool weather in the U.S. and on concern that corn exports from Ukraine would fall due to tensions with Russia.

U.S. farmers are forecast to produce 13.9 billion bushels of corn this season, according to the Department of Agriculture's forecast. The government is predicting that higher crop yields will offset a reduction in the number of acres of corn that are planted. The report also said that corn production globally would remain at record levels.

"Wheat and corn supplies may be tight here in the United States, but between what we're growing now and what will be grown around the world, that supply tightness will be alleviated,"said Mike Zuzolo, president of Global Commodity Analytics and Consulting.

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