NEW YORK (TheStreet) -- Corn demand is growing. But investors cut down the commodity's price Wednesday after a government report forecast greater production out of Brazil, South Africa and Russia.
$CORN sold all my corn calls today. will load up below 34 again-- Eric Zhou (@jingzhou) Apr. 9 at 01:47 PM
Teucrium Corn (CORN), an ETF that tracks the price of the underlying commodity, fell 0.82% by 2 p.m. Investors on StockTwits.com remained largely positive on the commodity, despite the price action. Sentiment stood at 82% bullish, according to StockTwits analytics.
At CLT airport for flight back home. Bacon cheddar burger and Indians game on tv. So happy I bought some more $CORN at 35.05-- Greg Harmon (@harmongreg) Apr. 9 at 12:52 PM
The U.S. Department of Agriculture cut corn inventory estimates Wednesday, sending the price of the underlying commodity briefly higher. Reserves by Aug. 31 will be 1.331 billion bushels, down from the 1.456 billion bushels predicted in March. The USDA said strong export sales and an increase in global projected demand would lower stockpiles. The European Union, Algeria, Iran, Egypt and Vietnam will all demand more corn this year, according to the report.
The drop in reserves was greater than forecast by many analysts. According to analysts polled by Bloomberg, Wall Street anticipated a forecast of about 1.404 billion bushels.
However, the USDA also said that global corn production would rise 6.4 million tons thanks to rainy weather in Brazil and South Africa. "For Brazil, favorable precipitation in March and early April has supported the developing Safrinha corn crop, with yields now expected just below last year's levels in the areas where this second-season corn crop is grown," the report said.