Corn Rebounds as Harvest Gain Less Than Forecast

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Nov. 8 (Bloomberg) -- Corn rebounded from the lowest price in three years after the government predicted smaller harvest gains than analysts forecast in the U.S., the world’s largest grower and exporter. Alan Bjerga has more on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Washington.

What was he surprised tackle he also got word that morgan stanley is still lashawn corn.

-- bullish on corn.

The record forecast was not a surprise.

The surprise was it was not as big a record as analyst were thinking third they were looking at more than 14 billion bushels.

It came at 13.989. as prices have been going down in corn, it becomes more competitive with other crops.

You actually end up with a smaller corn inventory in 2014 than what had been expected very inventories are actually tighter than what analysts have been saying.

The cause of that, you had the biggest corn rally in three years.

Even though the market is going down, it looks like rationing is making it reach a bottom.

How is this year different from last year when all we heard about was drought?

This year is like last year in reverse.

If you go back about a year, you had a record corn price in august 2012 of eight -- a dollar $.49 a bushel.

The u.s. became less competitive with competitors when -- and supplies went down.

This year it is the opposite.

You have a bumper crop, record corn production.

He cause of that u.s. prices have gone down 50% but you are seeing stability because the export markets that are sure going up are starting to bloom again.

Should we expect these numbers to change much?

U.s. corn harvest is now largely in.

We skip a month of abstinence -- month of estimates because of the shutdown.

The u.s. harvest is pretty much complete.

The information is going to be going to south america we see brazil and argentina start harvesting their crops.

Especially in the soybean markets.

See a big harvest that a south america, you will see that supply situation ease a bit.

You will see corn supplies also going up as well.

We're getting to that transition time of year where the american harvest is largely in, now we start shifting our attention sell.

Acre crops and supplies -- is there any reason to worry about food rices and supplies anymore?

We have seen such a dramatic shift from 2012 to 2013. it is a real reminder of that.

You will see an easing in consumer price inflation.

Some of the prices on chicken and beef are going to fade.

If you have weather problems in south america, we came go back to a new springtime in the u.s.. what is the latest on the farm bill?

This week, the senate and house were not meeting, but you did have four principles from the committees negotiating the bill.

They're trying to get an agreement together reserving the issues on food stamps, environmental rules, etc., hoping they can come back and get a deal quickly to congress so they can pass their bill before the budget the base -- debate takes the oxygen out of the room.

Is there a chance it will be done before the end of the year?

This is the most up the heat i have heard -- upbeat i have heard my sources and the farm industry for month.

The question is the deadline -- can you stay ahead of the budget debate so this does not get mixed into it?

At that case, it it becomes much less certain.

Alan beard of -- bjerga

This text has been automatically generated. It may not be 100% accurate.

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