US corn futures soared to a new record above $7.00 per bushel on Friday on excessive rainfall in the US and on soaring crude oil markets, traders said. Another wave of fund buying, estimated at 11,000 to 12,000 lots, led the way up and the new-crop July contract soared to a record $7.15-3/4 and the nearby July rallied to a record for a spot contract of $6.63-1/4.
Traders said the corn market was boosted because wet weather in the US is stalling seeding of the remaining 2008 corn acreage and posing a threat to some of the crop that has been sown, traders said. Soaring crude oil prices as Israel threatens to attack Iran's nuclear sites also lent support to corn prices, they said. CBOT corn closed 3-1/2 to 14 cents per bushel higher, with July up 7-1/2 at $6.50-3/4 per bushel.
Funds bought 11,000 to 12,000 contracts. Big electronic trade of roughly 450,000 lots, likely a record day. Heavy spread trade in July/September and July/December. July 2008 sets record high spot price at $6.63-1/4; new all-time high in July 2009 at $7.15-3/4. More rains hit US Midwest over the past day with more showers forecast for the week ahead, which will further stall corn and soybean growth and late planting.
Heavy rainfall threatens to harm US corn crop, especially in west and north. Rain and low temperatures stunt some corn in China's major corn area in the north-east. Eclectica agriculture fund bets big on corn. US cash corn steady. Oat futures closed 6 cents higher to 5 lower, with July down 4-3/4 at $3.99-3/4 per bushel.