Grain glut leaves U.S. farmers facing losses from specialty corn

CHICAGO (Reuters) – U.S. farmers who sought to boost revenues by planting corn used to make tortillas may be forced to sell their crops at a loss to makers of ethanol or animal feed because of a glut of what typically is a human food-grade product. Oversupply of the most common grains such as corn and soybeans has spread to niche markets because so many farmers have switched to planting different strains of seed to diversify and bolster returns after four years of bumper crops cut farm income and pushed down prices for staple grains. White corn, which makes up roughly 1 percent of the 14.6 billion-bushel U.S. corn harvest, can command a premium of as much as $1 per bushel over the commoditized yellow strain. But premiums have shriveled to four-year lows – to as little as 5 cents above Chicago Board of Trade corn futures Cc1. Too many farmers planted white corn in states such as Illinois, Illinois, Kentucky and Nebraska. Corn prices in 2017 declined for the fifth straight year and record-large U.S. stocks pushed growers to look for potentially higher-value alternatives. However, as acres devoted to varieties such as white corn, organic and non-genetically modified corn

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Source: CTRM Center

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