Corn Gets Creamed: Another 3-year Low

From Agrimoney:

Evening markets: corn hits fresh 3-year low, but wheat solid

The US Department of Agriculture, and other parts of the US government, may have shut down thanks to a budget impasse among lawmakers.

But bears remained firmly active in row crop markets.

The ravaging of corn and soybean futures evident in the last session - after the USDA, in one of its final acts before Washington ground to halt, lifted its estimate for inventories of both crops as of the end of 2012-13 – extended into Tuesday.

Once support from an early bout of short-covering wore off, December corn fell anew to close below its actual trading range during open dealing at $4.39 a bushel, down 0.6%, and the lowest level for a spot contract in three years.

'Combines don't lie'

Selling was only encouraged by further reports of strong yields from the US harvest, which trumped a failure by further USDA data on Monday to show any improvement in corn condition, leaving it at 55% rated "good" or "excellent".

"In late August the market put in a stiff weather premiums and much of that has had to be drained out of the market as the combines have moved into the fields," Darrell Holaday at Country Futures said.

"Combines don't lie." (Provided they are adequately maintained.)...MUCH MORE