WASHINGTON, DC – The U.S. Agriculture Department is warning farmers that the good times won’t last forever.
The U.S.D.A. says it projects the corn surplus will double if this year’s record crop is harvested. That means the more than $6 a bushel prices will drop to as low as $4.20, a two dollar per bushel fall.
It had an immediate impact at the Chicago Board of Trade.
While May futures remained at about $6.11 a bushel Friday morning, July futures plunged. July contracts were trading for $5.83 in overnight electronic trading. It equals a $5 billion loss to Iowa’s 2.5 billion bushel crop.
“The Des Moines Register” reports the drop in corn prices wouldn’t hurt all farmers. Livestock farmers would see lower feed costs and ethanol producers would pay less for the corn they use.