Friday, September 5, 2014

"Corn Jumps 3%, Most In 6 Mos., On Frost Worries"

The S&P 500 set a new closing high while the DJIA came within a couple points of doing the same.
From Bloomberg via Investors Daily:
Corn futures jumped the most in six months on concern that frost will hurt crops in parts of the U.S., the world's biggest producer. Soybeans and wheat gained.

A hard freeze in the Canadian Prairies and frost in Montana, the Dakotas, Minnesota and northern Iowa may be as few as five days away, Chicago-based QT Weather said Friday in a note. Most growing areas in the Midwest probably won't have temperatures low enough to damage crops, according to the forecast. On Thursday, corn and soybeans dropped to four-year lows on the outlook for bumper crops.

"One of the risks is a potential freeze in the northwest Midwest, and while the risk appears small at this point, those models can change over the weekend," said Arlan Suderman, a senior market analyst at Peoria, Ill.-based Water Street Solutions.

Corn futures for December delivery rose 2.7% to close at $3.56 a bushel on the Chicago Board of Trade, the biggest gain for a most-active contract since March 4. Thursday, the grain touched $3.4375, the lowest June 30, 2010....MORE
See also Tuesday's "Rabobank Calling the Bottom In Corn and Soy (but not quite yet)".