US corn matches record high

[2008-12-23 17:04:13]

US corn matches record high
Double Click to Auto-Roll News Source ：中国食品商务网 Publish Time：2008-6-19 Read： 561


US corn futures equalled a record high on Wednesday, bolstered by the worst floods in 15 years in the key US Midwest growing region, while soybeans retreated.   The corn market remained supported by the uncertainty of how many US crop fields are damaged due to the flooding and unknowns about yield potential.   The swollen Mississippi River, the main artery to transport grains to Gulf export terminals, ran over the top of at least 21 levees by Wednesday as floodwaters swallowed up more US farmland, feeding inflation fears as corn prices soared.   "We have a lot of reports of levees potentially breaking so we continue to get news of more acreage losses because of the flooding and that continues to support the market," said Mario Balletto, Chicago-based grains analyst for Citigroup.   But the Chicago Board of Trade corn market was choppy on Wednesday, ultra-sensitive to changing conditions since prices are at a record highs - nearly double the price last year.   CBOT July corn closed up 4 cents a bushel at $7.46-1/4 a bushel, recovering from an earlier sell-off. The all-time of $8.07 was matched in the May 2009 contract during Asian trading hours.   Corn was pressured earlier from prospects that the US government may open up acres in the Conservation Reserve Program for planting crops given the millions of acres that have been flooded in the top crop state of Iowa.   "With the flooding in Iowa, food suicide is something that comes to mind if they don't make some kind of a decision" on CRP, said Dan Basse, president of AgResource Co, analytical and research firm in Chicago.   US President George Bush will visit Iowa on Thursday to see the damage. Bush promised aid to the region where farm and business losses are expected to be in the billions of dollars.   Already, USDA has opened 24 million Conservation Reserve Program acres in May to haying and foraging to help the cattle industry cope with high feed costs. US soybean futures slumped on Wednesday amid hopes that Argentine farmers will lift their blockade of crop exports in one of the world's leading soy exporters, traders said.   Trade in Argentina has been paralysed for weeks as farmers and government official have yet to resolve differences over a soy export tax. Their differences have prompted a series of farmer strikes and road blockades, putting grain trade at a standstill.   Argentine President Cristina Fernandez moved to defuse the conflict on Tuesday by sending a bill to Congress asking to ratify the tax hike. Farm leaders have wanted the president to involve Congress for some time, hoping the legislators will debate the bill.   "The farmers are very happy with her doing that. The strike will probably end this afternoon," Basse said. Also bearish were the prospects for US farmers to return to the fields and finish planting soybeans. The flooded Midwest was getting a break this week from the recent rains that caused some the extensive flooding to millions of farm acres.   July soybeans ended down 2 cents at $15.56 a bushel and new-crop November soy closed 10 lower at $15.43.   Wheat prices rose, boosted by the strength in corn as well as diminished crop prospects in Australia and Argentina due to dry weather.   CBOT July wheat ended 5-3/4 cents a bushel higher at $9.04 while November milling wheat futures in Paris climbed 2.00 euros to 213.75 euros a tonne. Chicago July rice ended unchanged at $20.30 per hundredweight.

 
 
Source: 中国食事传媒
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