Corn Reaches 13-Month High on Signs of Worsening U.S. Drought |
| Bloomberg - Jul 17, 2012 |
Corn touched a 13-month high in Chicago as damage from the worst U.S. drought in a generation stoked concern yields will drop. Soybeans declined.
The Department of Agriculture cut its ratings for U.S. corn conditions for a sixth week yesterday, while heat indexes in Illinois, Indiana and Wisconsin may top 100 degrees Fahrenheit (38 degrees Celsius) today, National Weather Service data show. Grain and oilseeds are the best performing commodities this year among 80 raw materials tracked by Bloomberg. The rally may drive world food costs to a record this year, Danske Bank A/S said.
“Until the weather changes significantly, we’re going to continue to see the uptick in corn,” William Adams, a fund manager at Resilience AG, said by telephone from Zurich today. Extended dryness may spur the USDA to cut its crop forecast next month, and “if numbers come through dramatically worse, we will push prices to $8 and potentially have another 50 cents to a dollar higher in the move,” he said.
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- Posted: 2012-07-17 13:09:59
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