Corn Made Record Highs!

First Come The Rains, Then The Heat:


Crops that should be six feet high are dying

Corn made record highs yesterday, trading at $6.74, (See Chart) “as cold, wet weather delayed planting and flooded fields.” We wouldn’t have this problem with the cold if we had some of that (gasp!) global warming!

Corn’s yield potential falls unless plants have emerged from the ground before the end of May in most of the Midwest. Corn planted in wet, cool soils develops shallow roots, increasing the threat of damage from hot, dry weather in July and August.

Soybeans have broken out of consolidation and appear ready to challenge the record high of $15.70 (See Chart). Wheat’s slide may be over (See Chart).

“Movements in the corn market are likely to have a growing influence on wheat prices over the second half of 2008,” Rabobank Group said today in a report. “At current price levels soft red winter wheat is looking increasingly attractive as a substitute for corn in the U.S. and European feed ration.” (my emphasis added)

One could look at the chart of Rice and conclude its fall is about over (See Chart).

U.S. inventories of Corn are estimated to be 673 million bushels before the 2009 harvest, down 53 percent from a year earlier. That represents 20 days of use, “down from 40 days estimated this year and the lowest since 1996 when reserves were projected to last 18 days.”

Pretty soon we will have to turn all that ethanol back into corn! And Oregon’s Gov. Kulongowski stealing a page from Marie Antoinette, may tell us, “Let them eat ethanol!” Get those guillotines sharpened!

4 Responses to “Corn Made Record Highs!”

  1. …and still the idiots in congress can’t see the writing on the wall.

  2. TF, I’m afraid we are on our own!

  3. I grew up amid the corn and soybean fields of the midwest, and can tell from personal experience that this year is going to be the

    worst

    ever.

    There are a couple of reasons for this, though paramount has been the cold, wet weather. As well, food-grade corn has been cut back in favor of what we used to call “field corn” – the stuff intended originally for animal feed but which is diverted now to ethanol production.

  4. Max, I wasn’t aware of this other kind of corn “field corn”. I thought corn was corn.

    From what I’m reading, I would have to agree with you.

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