Corn fell to a two-month low earlier this week on concerns that Chinese demand for imported crops may slow as the US Department of Agriculture might raise grain inventory estimates.
 
The US Department of Agriculture may forecast tomorrow that world inventories of corn will reach 122.13 million tons, higher than the organisation’s forecast of 121.57 million tons last month. However, whatever the figure will be that is released tomorrow, investors will proceed with caution as many have become increasingly sceptical over the US Department of Agriculture’s figures. The organisation has reduced its corn-crop estimates in 2010 and 2011 by the most for any two-year period since 1984.
 
The forecasts have been cut four times in as many months this year as rain delayed planting and hot, dry weather disrupted the growing season in the US midwest, leading investors to question the reliability of the figures. Corn prices further tumbled after farmers responded to record-high prices by planting more crops and increasing supply. Further weighing on the price of corn were concerns that current economic market turmoil would weaken demand, with speculators turning cautious ahead of a make-or-break European Union leaders summit to resolve the region's deteriorating debt crisis. This morning, corn futures for March delivery continued to fall and were down almost 1% at $5.87 per bushel.