Indiana Grain Company, LLC

Posted: 07/26/12

By: tomgrisafi

Early in the week, forecasts of rain for the Midwest drove grain prices lower, but it’s too late for any amount of moisture to save much of the corn crop, half of which is now expected to be in poor condition or worse, analysts tell CNBC.

"When you have a lot of people in a market that's gone up quite a bit, they have itchy trigger fingers and they're looking for an excuse to get out," said Mike Harris, director of trading at Campbell and Co.

The latest U.S. Department of Agriculture data, the report reads, shows that just 26 percent of the corn crop is in good to excellent condition, as compared to 31 percent last week. At the same time, 50 percent of the crop, due to drought and severe heat, is now poor or very poor, compared to just 38 percent last week.

Rain is forecast for parts of the northern and eastern Midwest, while 100 degree temperatures continue to grip other parts of the corn belt. Grains have been soaring in recent weeks, and traders have warned that trading on weather is risky, volatile and highly emotional.

New corn crop futures are up about 50 percent since early June.

Sources: USDA, CNBC