Japanese demand for corn is expected to slip as the Pacific Rim nation suffers from the effects its most severe earthquake, Bloomberg reports.
The biggest importer of the commodity also suffered a tsunami that followed the Friday earthquake that registered a 9.0 on the Richter Scale. The nation's agriculture minister said livestock-feed output will be somehow impacted by as much as one-fifth.
"Commodity demand in the region, including agricultural commodities, is expected to suffer," according to a Monday report by Commonwealth Bank of Australia strategist Luke Mathews.
Shortly after 1:30 p.m. on Monday, corn futures slipped 0.19 percent, a 0.0125 cent slip to $6.63 per bushel.
Japan's northern region, which endured the brunt of the natural disasters, also is likely to reduce the amount of feed it produces. The country generates about 24 million metric tons of feed, 4.8 million of which are from the northern region. Coastal-area ports and plants that generate feed were damaged.
"The Japanese quake adds to the existing bearish mood" that has persisted during the past few weeks, the report states.
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