Blistering Pace for U.S. Corn Planting Signals Supply Relief
(Bloomberg) -- U.S. corn farmers are planting at the fastest pace since 2015, a move that could finally bring some relief to a market that’s battling tight supplies.
Sowing of America’s most widely grown crop is 46% complete, the U.S. Department of Agriculture said Monday. That marks an increase of 29 percentage points versus last week, the biggest such advance in six years.
All eyes in the food world are currently on America’s corn belt. Bumper U.S. supplies might be the only the factor that can help prices ease off a recent surge to an eight-year high. Growers in top rival Brazil are battling drought, while China is snapping up huge purchases of the grain. High corn prices increase costs to feed livestock herds, which translates to meat inflation for consumers.
The good news for consumer wallets: U.S. crop weather has been extremely favorable recently. Sunny, warm days throughout the Midwest allowed for the quick pace of plantings. The good weather coupled with high prices has increased speculation in the market that farmers will end up with more corn acres than the USDA is currently predicting. The agency will update its forecasts at the end of June.
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