Monday, July 21, 2008

Corn tumbles 4%, hits lowest in more than a month (ADM; AVR; PEIX; VSE)

From MarketWatch:
Corn futures tumbled 4% Monday to the lowest in more than one month, continuing the agriculture commodity's steep slide that has left corn down 20% this month.
"The bubble has burst," said Phillip Streible, senior market strategist at futures brokerage Lind-Waldock.
Corn futures for December delivery slumped 4.1% to an intraday low of $6.03 a bushel on the Chicago Board of Trade, the lowest seen since May 29. It was last down 17.75 cents, or 2.8%, at $6.11 a bushel.
Corn soared more than 20% in June and hit a record high of $7.96 a bushel, as midwestern flooding washed away some cornfields. But corn has surrendered 20% in July after weather turned to favorable and floodwaters receded.
"We have pretty good weather and it's very negative to corn prices," Streible said....MORE

We'll have the Crop Progress Report at 4:00 EDT.
Meanwhile the ethanol producers are mixed:

PEIX down 2.71%
ADM down 1.87%
AVR up 6.96%
VSE up 10.95%