Indiana Grain Company, LLC

Posted: 08/30/10

By: tomgrisafi

Corn traders get ready. There could be lots of price action in grains this week and beyond.

As reported overnight by our friends at Bloomberg, corn futures advanced to a 14-month high on speculation that the U.S., the world’s largest grower and exporter, may miss a forecast record harvest and as growing regions in China face flooding.

"December-delivery corn rallied as much as 2 percent to $4.445 a bushel, the highest price for the most-active contract in Chicago since June 15, 2009. It traded at $4.4425 a bushel at 9:53 a.m. Singapore time."

From Bloomberg:

"The Midwest, the largest producing region in the U.S., will be drier than normal in the 10 days from Aug. 27, according to a forecast by Accuweather.com over the weekend. Corn growing regions in China, including Heilongjiang and Liaoning, will have as much as 1.25 inches of rain, renewing flooding problems, it said in a separate report."

“Weather concerns in parts of the U.S., Argentina, and Asia supported prices, along with export demand for U.S. corn,” Commonwealth Bank of Australia said in a report e-mailed today.

"Twenty-one of 32 traders and analysts surveyed from Chicago to Tokyo on Aug. 27 said corn will climb this week and 20 of 33 predicted soybeans will rally on speculation dry weather will reduce U.S. crop yields."

Source: Bloomberg