From finance.yahoo.com:
Corn prices and the related exchange traded fund are rising as the
U.S. Department of Agriculture warns crops are being damaged by the
excessive heat in key corn-growing regions.
The USDA recently reduced the “good-to-excellent” rating on crop
conditions by 4%, the largest single-week downgrade in three years, as
the hot weather scorches crops, writes Kevin Van Trump for Inside
Futures .
The USDA also reported that corn “silking” increased from 35% to 65%.
The late “silking” process will cause pollination to occur later into
the high temperature weather that is now being forecast, which would
cause further crop damage from the excessive heat.
“An increase in hot, dry weather will increase stress to the
pollinating and shallow root crops,” according to a Telvent DTN report
on Midwest corn prospects, reports Nigel Hunt for Reuters .
“I think they (prices) are bouncing off the crop condition report
which was released by USDA yesterday which confirmed the continued
deterioration of the corn and soybean crop in the U.S.,” commented
Robobank analyst Erin FitzPatrick.
Chinese demand for corn has increased the profitability for corn
growers, reports Tony C. Breibus for Bloomberg . Consequently,
Argentina and Brazil, the two large exporters of corn after the U.S,
will increase acreages of farmland dedicated to corn crops, according
to oilseeds analysts Oil World.
“An Argentine trade delegation is currently negotiating several trade
agreements with Chinese officials,” according to analysts in an Oil
World report. “In Brazil, corn plantings are likely to be expanded in
the southern and some central parts, as farmers are responding to the
improved profitability of corn production, mainly used domestically.
