AM markets: speedy US cold front pushes grain prices lower
The grain traders who a couple of months ago were begging for more market volatility have certainly had their wish granted.Futures started the week with another big move – this time downwards, and sufficient in corn to produce a gap in the chart for the December lot, with Monday's price high so far, at $3.89 ¼ a bushel, more than $0.03 below the bottom of the trading range for the last session.The contract stood down 1.7% at $3.86 ¾ a bushel as of 09:30 UK time (03:30 Chicago time).The cause of the selling was, again, primarily down to changes in the US Corn Belt weather, this time for the better in production terms.As David Tolleris at WxRisk.com noted, this weekend "there was significant rain over the north eastern 25% of Iowa, with some areas getting as much as 7 inches of rain."This heavy rain extended into the north east 25% of Illinois and north west Indiana, with a second area over south west Indiana near the Kentucky state line."'Heat pretty much over'Sure, Mr Tolleris also noted that central and western areas of Iowa, the top corn-growing state, as well as eastern Nebraska and northern Missouri missed out on expected rain.However, on a more positive note for growers, a cold front has "clearly come in 6-12 hours fast."As a result the threat of 95-100 degree Fahrenheit temperatures over Iowa, northern Missouri and downstate Illinois is pretty much over with for the time being."...