You really, really don't want to be short when the market is limit up.
Corn prices soared by a record and soybeans jumped on concern that freezing temperatures next week may hurt plants in the U.S, the biggest producer and exporter of the crops.
Damaging cold weather is possible in the northern Great Plains and Midwest beginning Sept. 23, with the lowest temperatures expected Sept. 25 to Sept. 27, according to the National Weather Service. Freezes may affect fields from South Dakota to Michigan, and frost may occur in parts of Nebraska, Iowa, Illinois and Indiana, World Weather Inc. said.
“The market is worried that freezing temperatures will reduce yields,” said Gregg Hunt, an analyst at Fox Investments in Chicago. The forecasts may spur purchases by makers of livestock feed, food and ethanol, he said.
On the Chicago Board of Trade, corn futures for December delivery surged by the exchange’s limit of 30 cents, or 9.4 percent, to $3.4775 a bushel at 12:15 p.m. A close at that price would be the biggest gain for a most-active contract. The increase was the steepest in the Reuters/Jefferies CRB Index of 19 raw materials.
On Sept. 8, corn touched $3.02, the lowest level since October 2006. Before today, the price fell 22 percent this year.
Soybean futures for November delivery rose 52.5 cents, or 5.8 percent, to $9.615 a bushel. A close at that level would mark the biggest gain since July 30. Yesterday, the oilseed touched $8.92, the lowest price since July 17. Before today, futures dropped 7.2 percent this year...MORE