Flooding Causes Record High Corn Prices 9th Straight Day

Submitted by SadInAmerica on Mon, 06/16/2008 - 9:27am.
Corn soared to a record in Chicago, extending its rally to a ninth straight session, as floods in the Midwest threatened production in the U.S., the world's largest producer and exporter. Soybeans rose to a three-month high.

"The U.S. Midwest, including the flood-ravaged mid- Mississippi Valley, will be pounded by another round of severe weather through tonight, private forecaster Accuweather.com said on its Web site yesterday. "Heavy downpours caused by the thunderstorms threaten to aggravate existing flooding or cause new flash flooding problems.''

Corn futures for December delivery, after the next harvest, rose as much as 23 cents, or 3 percent, to $7.88 a bushel on the Chicago Board of Trade. The price traded at $7.8475 in after- hours trading at 9:19 a.m. Singapore time. The old crop July delivery was up 2.6 percent at $7.51 after touching $7.545.

The December contract gained 13 percent last week. The most- active contract has jumped 85 percent in the past year on record demand for livestock feed and biofuels. Global inventories may shrink to a 24-year low, the U.S. Department of Agriculture has said.

Soybean futures for July delivery rose as much as 19.5 cents, or 1.3 percent, to $15.795 a bushel, the highest since March 4, before trading at $15.7175. The most-active contract reached a record $15.865 March 3 on demand for animal feed and cooking oil.

As much as 12 inches (30 centimeters) of rain dropped in the Midwest last week, and some fields had five times the normal moisture since the end of May, the National Weather Service said. U.S. corn stockpiles before the 2009 harvest will fall 53 percent to a 13-year low, and soybean supply as a percentage of use will drop to a record this year, the government predicts.

"This is some of the worst flooding I've seen since Katrina,'' David Paulison, administrator of the Federal Emergency Management Agency, said yesterday, referring to the hurricane that devastated New Orleans in 2005.

Bloomburg - June 16, 2008 - posted at http://www.roguegovernment.com/news.php?id=10008

Tag this page!
Submitted by SadInAmerica on Mon, 06/16/2008 - 9:27am.