To say that there is a bumper crop of corn might be an understatement.
The U.S. is in the midst of one of its best crops in years. There’s so much corn that according to Bloomberg News, stockpiles of the grain are growing at their fastest rate in nine years. The U.S. Department of Agriculture recently raised its forecast for the corn crop to 14.03 billion bushels, an increase from the 13.86 billion bushels forecast in July. The 2013 harvest was 13.93 billion bushels.
Since supplies are outstripping demand, corn prices are plummeting and have slumped more than 20% year-to-date. Bob Young, the chief economist for the American Farm Bureau, told InvestorPlace that prices may slump even further in the coming months.
For investors, there are a few ways to look at the good news, over both the short and longer term.