CHICAGO (Commodity Online): US corn futures tumble Thursday after the USDA issues much larger-than-expected supply estimates.
Although the USDA's changes from last month were not huge, traders had widely been expecting supply cuts.
Instead, the USDA raised its 2011 crop estimate and 2012 world stockpile projection, while leaving its US inventory projection unchanged.
Traders were leaning the wrong way headed into the report, and the market plunged limit down shortly after the open and stayed there most of the day.
The market is expected to fall again Friday, although worries about South America's crop and a looming three-day holiday weekend could add some uncertainty. CBOT March corn ends down 40c, or 6.1%, to $6.11 1/2. Friday's trading limit will be expanded to 60c.
Courtesy: CME Group
