corn futures quotes

corn futures quotes

September 23rd, 2014

An ounce of gold is worth the most bushels of corn in at least four decades, signaling the grain is “dirt cheap,” according to AgriVisor LLC.

The CHART OF THE DAY shows one ounce of gold buys more than 370 bushels of corn, the most since the data for U.S. trading begins in 1975. December futures for the grain have tumbled 28 percent this year as global farmers are set to produce a second straight record harvest. Bullion is up 1.6 percent in 2014.

“Understanding the relative values can help one determine in which sectors investment money might be channeled,” said Dale Durchholz, the senior market analyst for Bloomington, Illinois-based AgriVisor. “Corn is a better value than gold.”

The grain’s price declines can help spur more demand from makers of ethanol and livestock producers, Durchholz said. Global consumption is already forecast at an all-time high of 970.7 million metric tons by the U.S. government.

“Trader attitudes are universally pessimistic,” Durchholz said in a telephone interview. “While it’s difficult to make a fundamental case for a rally with record supply on the horizon, this is not the time to be getting short corn.”

On the Chicago Board of Trade, December corn futures fell 1.4 percent yesterday to $3.255 a bushel, after touching $3.2475, the lowest since June 2010. Gold futures December delivery rose 0.3 percent to $1,222 an ounce on the Comex in New York.

- Jeff Wilson in Chicago at Bloomberg.