US MIDDAY: corn soars

07 Feb, 2008

Chicago Board of Trade corn futures hit record highs on Wednesday on spillover support from the roaring US wheat markets which were locked limit-up, traders said.
The record high in corn was set in the July 2009 contract which continued to rally. By 10:08 am CST, the highest price in July corn was $5.65-3/4. The all-time high in soybeans was made in July at $14.03-1/2. Strong export demand for corn remains a supportive feature for CBOT corn futures.
Steady export business this season was triggering analysts to expect USDA to trim its US 2007/08 ending stocks figure in its monthly crop report to be issued on Friday.
On average, analysts expect USDA to cut its corn ending stocks to 1.408 billion bushels, below its January forecast for 1.438 billion. In fresh export business, Israel is tendering for 48,000 tonnes of corn. Traders continue to focus on South American weather.
Argentine crop was benefiting from recent rains and the forecast called for chance of showers near the end of the week through the weekend, DTN Meteorlogix weather said. However, crops in northern Brazil were getting too much rain, raising worries about crop quality.

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