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|User Info||Corn (soon Soybeans also?), push higher w/drought; entered at 2012-07-13 07:49:42|
Registered: 2007-09-04 Wilmington, NC
Corn pushes higher as crops shrivel in heat wave|
The price of corn jumped 4 percent Thursday as crops continue to shrivel in a relentless heat wave across much of the country.
December corn futures rose 28.25 cents to end at $7.3225 per bushel. That's the highest price since August.
About 30 percent of the crop is in poor to very poor condition, compared with just 9 percent in that shape a year ago.
The outlook isn't encouraging, either. The chance of precipitation is below normal for some Midwestern states over the next several days, according to an Accuweather.com forecast. Analysts have said that the corn crop could sustain additional damage without significant moisture in the near future.
The U.S. Agriculture Department predicted Wednesday that this year's harvest would be 12 percent smaller than it had forecast in June because of damage to crops from the persistently hot, dry weather.
Corn supplies, both in the U.S. and globally, were tight heading into this season, so the prospect of small stockpiles after the harvest has driven up corn prices nearly 33 percent since June 1. Those higher prices are weighing on the stocks of companies that rely on corn for their products, such as meat and food producers.
Soybeans, which are in a critical part of the growing cycle this month, also have been hurt by the hot weather. Soybeans for November delivery rose 6.5 cents to end at $15.29 per bushel and September wheat gained 20.5 cents, or 2.5 percent, to $8.4675 per bushel.
Other commodities were mixed as traders worried about the prospect for demand in the slowing global economy after more disappointing news from Europe. Spain's borrowing costs rose again, indicating that investors consider the country's debt risky.
New economic data is expected from China on Friday which should provide more insight into its slowdown.