Will Corn & Soybeans Continue Climb to New Records?
Corn and soybeans fell today, but will likely extend the rally to record highs as weather in the United States continues to threaten harvest. The worst drought in a generation ensures that output of the grains will be small.
Doane Advisory Services predicted that corn production will fall 33 percent to 1.58 billion bushels this year down from 2.356 billion in 2011. US farmer may gather a lowest harvest of soybeans in nine years. The US Department of Agriculture reported that corn and soybeans are in the worst shape since the drought in 1988.
Specialists say that weather should influence the corn prices to a lesser degree as the biggest damage was done last month, when the crop was going through the most important period of growth. Soybeans, on the other hand, remain to be susceptible to the drought.
Corn reached was down $0.0875 (1.07 percent) to $8.0525 per bushel as of 21:51 GMT on CBoT today, following the jump to the record high of $8.1775. Prices have climbed as much as 28 percent in July. Soybeans declined $0.0250 (0.15 percent) to $16.4100 per bushel today, while prices have rallied 15 percent over the month.
If you have any questions and comments on the commodities today, use the form below to reply.