Mmm. A couple of data points - Soybean, Corn Futures Hit New Lows tells that corn slid to its lowest level in 3 years. The reason? The fall harvest is going to be the largest in U.S. history. Almost 12 percent had been harvested last Sunday with inventories of 824 million bushels. Corn futures for December delivery were selling for $4.39 a bushel.
Last year was a down year for corn production because of severe drought in the Midwest. (It is interesting to remember in 1960 total U.S. corn production was a little under 4 billion bushels. This year USDA is estimating 13.8 billion bushels.)
Monsanto's losses widen as seed sales decline tells that Monsanto sold fewer genetically modified seeds in the fourth quarter. The company lost 47 cents a share for the last quarter. This is traditionally Monsanto's weakest quarter since farmers will buy their spring supplies in the next quarter.
Unknown is whether the lower seed sales are because farmers are turning away from the genetically modified seeds, or whether they will actually be planting less corn in the near future.