A risk-on trade on a decidely risk-off day.
From the Wall Street Journal:
The U.S. Department of Agriculture cut its forecast for U.S. corn production to 12.31 billion bushels after the agency decided yields were weaker than previously expected.
"Based on conditions as of November 1, yields are expected to average 146.7 bushels per acre, down 1.4 bushels from the October forecast and down 6.1 bushels from 2010," the USDA said in its Crop Production report. "If realized, this will be the lowest average yield since 2003."
The new corn production forecast is a drop from the 12.433 billion bushels that USDA predicted in October and the 12.497 billion bushels in September, according to the crop report.
With lower forecasts for corn production and for demand from the livestock feed industry, the USDA also said Wednesday it expects ending stocks for the commodity to drop to just 843 million bushels, down from the 866 million bushels that it predicted a month ago....MORE