Corn Stores to Dip Ahead of FY12 Harvest (MOS) (POT) (CF)
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U.S. corn inventories may increase less than expected ahead of the 2012 harvest.
Higher demand for ethanol, animal-feed, and corn exports will stem inventories.
From the 880 million bushels in inventory expected at the end of this year, next year stores are expected to be at 870 million bushels by August 31, 2012, says the USDA.
Analysts were expecting 1.029 billion, and the USDA forecast 695 million bushels in June.
Those shelling out more may include meat processors Tyson (NYSE: TSN) and Smithfield (NYSE: SFD), as well as ethanol producer Archer Daniels (NYSE: ADM).
The U.S. is projected to produce 13.47 billion bushels, a 2 percent gain when compared with 13.2 billion forecast in June. Last year, it's estimated that 12.447 billion bushels of corn were grown in the U.S.
After a strong early session, many ag stocks have pulled back, including Mosaic (NYSE: MOS), Potash Corp. (NYSE: POT), Agrium (NYSE: AGU), and the Agriculture ETF (NYSE: MOO). September corn contracts are $4.20 to $647.2 per bushel on the Comex.
CF Industries Holdings, Inc. (NYSE: CF) is bucking the trend and is up 3.2%.
Higher demand for ethanol, animal-feed, and corn exports will stem inventories.
From the 880 million bushels in inventory expected at the end of this year, next year stores are expected to be at 870 million bushels by August 31, 2012, says the USDA.
Analysts were expecting 1.029 billion, and the USDA forecast 695 million bushels in June.
Those shelling out more may include meat processors Tyson (NYSE: TSN) and Smithfield (NYSE: SFD), as well as ethanol producer Archer Daniels (NYSE: ADM).
The U.S. is projected to produce 13.47 billion bushels, a 2 percent gain when compared with 13.2 billion forecast in June. Last year, it's estimated that 12.447 billion bushels of corn were grown in the U.S.
After a strong early session, many ag stocks have pulled back, including Mosaic (NYSE: MOS), Potash Corp. (NYSE: POT), Agrium (NYSE: AGU), and the Agriculture ETF (NYSE: MOO). September corn contracts are $4.20 to $647.2 per bushel on the Comex.
CF Industries Holdings, Inc. (NYSE: CF) is bucking the trend and is up 3.2%.
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