Corn Drops Maximum Allowed on Spread of Economic Fears

Corn dropped by the maximum allowed on the Chicago Board of Trade (CBOT) today as the spread of economic fears and realities is starting to hit Europe hard, and China and India are showing signs of slowing demand as well.

Growing concern on a global scale is causing almost all commodities to fall in price as demand across the board decreases. The only exception to positive growth for commodities for today was with Gold.

Much of the problem continues to be access to capital. It's possible to continue to have a negative impact even as prices drop because of inability to acquire the needed operational funds.

Corn for December delivery fell as low as the maximum allowed, to $4.24 a bushel earlier in the day.

The golden nugget continues its poor performance, following up its horrible week that just ended where it crashed by 16 percent, the most since June 1973.

It's far down from its $7.9925 a bushel it reached on June 30 of 2008, a 47 percent plunge.

Corn Futures Increase on Weather Concerns, Export Demand

Noting that higher temperatures could cause problems in the corn yield, the price of corn futures increased today, closing up by 12 cents to $5.94 a bushel. December corn also increased by a little over 12 cents, finishing the session at $6.13 1/2.

The concern is over how well the corn pollinates during this crucial time, as too warm weather could hamper the yield results.

Even with the strong response of buyers, the warm weather isn't anticipated to stay too long, and hopefully will just be a temporary blip.

Drew Lerner, an agricultural meteorologist at World Weather Inc. said, "We shouldn't have more than just a few days of stressful conditions in the eastern part of the corn belt."

Other factors were concerns by end-users that other variables like a late growing season, early frost and increased export demands could impact them down the road, so they wanted to lock inventory in so they don't lose out later in the year.

Philippine Corn Output Increases 27.6 Percent in 1st Quarter

Corn production in the Philippine's in the first quarter gained 27.6 percent to reach 2.17 million metric tons. In the same season last year production reached 1.70 million metric tons.

Agriculture Assistant Secretary Dennis Araullo said output exceeded expectations of the projected 2.14 million metric tons.

“More farmers planted corn in the last quarter of 2007. The total area harvested for corn reached 711,000 hectares,” Araullo said.

The best areas of production were the provinces of Isabela and Mindanao.

With the unexpected high results, if the second quarter holds up to expectations, the first half would reach 3.34 million metric tons, which would be an increase of 21 percent. Last year the first half produced 2.75 million metric tons.

If corn production keeps at this pace, the yearly output would reach 7.384 million metric tons, bringing the self-sufficiency level of corn for the Philippines to 94 percent.

Assuming the projections are close to accurate, yellow corn would reach 4.647 million and white corn 2.737 million.

U.S. Agriculture Secretary Ed Schafer Says No Change in Biofuels Policy

The criticism and impact of the biofuels policy in the U.S. and Europe is causing food riots and protests across the world, as the prices of food surge; mostly on the continuing price increases of corn.

For U.S. Agriculture Secretary Ed Schafer to say there will be no shift in the subsidy of corn in the U.S. and it will be business as usual with ethanol, is irresponsible at least, and, as some are calling it, "a crime against humanity."

In the U.S. alone, ethanol is expected to consume about 25 percent of the corn crop, which is estimated at 13.1 bushels this year.

Now the uncertainty of heavy rains in respect to planting season, leaves no room for error in the U.S. If anything comes along to disrupt the season, corn prices would go through the roof. They're already expected to continue rising throughout 2008.

Investors in Pilgrim's Pride Corp (NYSE:PPC) were ecstatic this week, as the company announced they were cutting production based on high feed costs for the second time in the last 30 days. The reduced supply will cause meat prices to go up, adding to the other effects of corn on the market.

It's possible that the entry of goverments into the biofuels business may be one of the most obivous and public mistakes they've made.

Not too long ago, after 30 million deaths in Africa, DDT was finally reintroduced into the continent to battle mosquitos, which spread malaria to the inhabitants. It was done very quietly, as not to reveal the outrageous results and consequences of another irresponsible government program.

Corn News Weekend Roundup

=====

Corn Falls on Improved Weather

Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.

=====

Corn market gains more uncertainty in April

Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.

=====

CBOT Corn Review: Down On Profit-Taking, Weather Concerns

U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.

=====

Profit taking weigh down corn futures

U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs

=====

S Korea's Nonghyup buys 165,000 tonnes of US corn

South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.

=====

Corn Futures Expected To Continue To Grind Higher

In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.

=====

Texas A&M report clears corn from food price inflation

The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.

=====

Weekend Corn News Roundup

=====

CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking

Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.

=====

Corn Looks to Trend Higher

On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.

=====

In The Cattle Markets: Prospective Plantings Will Not Help Feeders

It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.

=====

Japanese food processor to accept GM corn

Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.

=====

CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking

Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.

=====

Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls

Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.

=====

Monsanto to build seed corn facility near Independence

On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.

=====

The Latest Corn News

Corn News from around the Internet

=====

Farm Lobby Beats Back Assault On Subsidies
With grain prices soaring, farm income at record highs and the federal budget deficit widening, the subsidies and handouts given to American farmers would seem vulnerable to a serious pruning.

=====

Corn choice could be key to consumers

As spring planting nears, farmers are making a choice that could affect what Americans pay for everything from car fuel to chicken wings.

=====

CBOT Corn Review: Bounce From Losses On Bullish Acres Talk

Chicago Board of Trade corn futures ended higher Friday, rebounding from earlier session losses on bullish acreage outlooks for Monday'splantings report and supportive underlying fundamentals.

=====

Huge U.S shift away from corn to soy acres

Record-high soybean prices are expected to lure U.S. farmers to make a huge shift away from corn production in 2008 and if the current cold, soggy weather pattern persists in key corn states, corn plantings may be cut even more dramatically than analysts now expe

=====

Glo orders NFA to have corn sold in its outlets, supply watched

BEFORE the supply of corn grits runs out, President Arroyo ordered the Department of Agriculture (DA) to find out if local distributors have been hoarding it or if it is distributed unevenly.

=====

Corn farmers anxious to get back into fields

Recent rains and flooding have many Arkansas farmers cooling their heels. They would like to be preparing their land for planting corn, but weather-related problems have delayed tillage operations.

=====

South Africa Raises Corn Crop Estimate by 1.7 Percent

South Africa, the biggest corn producer in Africa, raised its corn crop forecast for this season by 1.7 percent.

=====

Argentina Farmer Strike Causes Corn to Rise to Allowed Limits

After an export tax increase in Argentina, farmers protested by blocking ports and asserting they'll plant less crops this year than in the past - including corn.

The strike shut things down so completely that only 19 trucks entered the port of Rosario, according to reports, when a usual day in March can have up to 6,000 trucks delivering goods to the port. Rosario accounts for about 60 percent of the grain exported out of Argentina.

The protest is actually in reference to increases in export taxes on soybeans and sunflowers seeds, which was increased to around 44 percent from the 35 percent last week.

As a result, the possibility that exports for Argentina could be cut back, caused prices to rise as high as they're allowed for corn by the Chicago Board of Trade.

May delivery of corn futures rose by 20 cents, to reach $5.4475 a bushel, or 3.8 percent.

Over the last year, corn prices have risen by 35 percent and attained a record on March 11 of $5.795 a bushel.

Another factor causing the increase of corn prices is the weather in the U.S., which has been extremely wet in the eastern portion of the midwest, which is causing farmers to delay planting. It looks like the wet conditions will continue on for some time in some parts of this region of the country.

Finally of course, the artificially created market for ethanol continues to put pressures on corn prices, as the unproven fuel continues to reek havoc in the markets.

All this combined makes the price of corn likely to continue increasing in price over the next several months.