2/4/2008
May Corn finished up 9 1/4 at 522 1/2, 1/2 off the high and 9 1/4 up from the low. December Corn closed up 14 at 533. This was 14 up from the low and 1/2 off the high.
Corn rallied today on continued strong export demand along with higher wheat and soybeans and closed near the highs of the day.
Mexico's Energy Department said today that it would start to allow companies to produce both ethanol and bio-diesel fuels in order to reduce exhaust emissions and to provide a boost in income to impoverished farmers.
The Buenos Aires Grains Exchange reported on Friday that this year's corn harvest may be only 20.5 million tons due to hot and dry conditions. The crop also suffered from the fairly severe frosts that occurred there last November. Those frosts were thought to have damaged wheat and this triggered a halt in grain export registrations. Damage to wheat proved to be negligible and wheat registrations have since reopened. Export registrations for corn are set to reopen shortly. Basis levels at the Gulf were steady to firm today on good demand. Traders expected fund buying today, and funds were buyers in most markets during the session. Export inspections dipped sharply this week to 47.74 million bushels compared to 61.15 million the week before. This was in line with trade expectations. A weekly average of 45.43 million bushels is needed to reach the USDA projection. The budget sent to Congress by the Bush Administration left the 54-cent US ethanol import tax unchanged, so far.
May Rice finished down 0.1 at 15.4, 0.08 off the high and 0.01 up from the low.
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