USDA says corn demand slowing; CBO projects sub-$4 corn through 2019

In Washington, the US Department of Agriculture reported that the global economic downturn was reducing demand for corn and causing stocks to grow, sending March corn futures tumbling to $3.72. A report by the Congressional Budget Office forecast that corn prices would remain below $4 per bushel for the next decade, falling as low as $3.65 in 2012-13 and rising to $3.94 by 2019.

The CBO analysts said that while demand is expected to increase 18 percent, a 15 percent increase in production yields will keep supply and demand in balance.

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