Thursday, January 3, 2008

Corn Market Recap for 1/2/2008




2 Jan 2008
March Corn finished up 7 at 462 1/2, 7 off the high and 6 1/2 up from the low. December Corn closed up 6 3/4 at 480 1/4. This was 6 3/4 up from the low and 7 1/4 off the high.
A sharp break in the US stock market and a surge to new all-time highs for crude oil set the stage for an impressive rally in the grain markets today. International money managers appear even more attracted to Agricultural markets with so much uncertainty in financial markets. A rally of nearly $3.00/barrel for crude oil and $20 for gold helped spark aggressive speculative buying across all of the grain markets which helped spark the early run to new contract highs and to the highest level for nearby corn futures since July of 1996. New crop December corn moved as high as 487 1/2 early in the session. The market is finding some fundamental support from an uncertain weather outlook for the drier areas of Argentina and from news of export tariffs for China corn. Traders see news that China is taxing exports as further evidence that US corn export demand should remain strong. Gains may have been limited by general fears that producer selling could increase on the move to new highs into the new tax year. Midwest cash basis levels were said to be weak at some locations as the new high may have attracted some increase in producer sales. Nearby corn futures posted gains of 16.7% for all of 2007.
March Rice finished up 0.42 at 14.285, 0.015 off the high and 0.145 up from the low.

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