Corn price plunges as US acreage rises

From the FINANCIAL TIMES:

Corn futures have suffered their steepest fall in 15 years after record prices prompted US farmers to defy wet spring weather to plant a sharply increased acreage of the grain…

Corn has led major food commodities higher, rising 78 per cent in the past year as demand from US, China and other big consumers threatened to run down supplies. It has contributed to rising meat prices, which in the US are 8.5 per cent higher than a year ago.

In Chicago, corn for July delivery fell as much as 83 cents to $6.15 a bushel. The 11.9 per cent decline was the sharpest in percentage terms since 1996. Chicago wheat fell 9.5 per cent. The benchmark Reuters-Jefferies CRB commodity index, which was on track to end its worst quarter since 2008, declined 0.2 per cent…

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