Corn Prices Plunge After Surprise Inventory Report

Corn prices took a hit on Wednesday after the USDA released its Quarterly Stocks Report, which showed higher-than-expected inventory levels. The report pegged stocks in all positions at 2.095 billion bushels, up 171 million from the previous month and above market expectations.

Bryan Doherty with Total Farm Marketing said the surprise was negative for the market, implying lower demand. He noted that it would take a yield cut to offset the higher inventory levels.

Doherty believes yields may come down in the October report, which could help offset the higher carryover. However, he warned that managed money funds, who are long over 400,000 contracts in the corn market, may trigger liquidation and put pressure on prices.