Thursday, April 3, 2008

Corn Settles at $6, after Record $6.025

The story for corn continues to be the projected supply problems, and the resultant surge in prices. That story continues, as corn broke another record today, reaching $6.025 a bushel before settling to $6. Corn has already increased by 30 percent this year, as demand increases.

This follows yesterday's prices, which just fell short of the $6 a bushel mark.

"It's a demand-driven market and we may not be planting enough acres to supply demand, so that adds to the bullishness of corn," said Elaine Kub, a grains analyst with DTN in Omaha, Neb.

We also talked about the decreasing acreage being planted in corn this year, which have dropped by about 8 percent across America.

The wet weather continues to wreak havoc in the industry as well, with plantings not only being put off, but growers talking about abandoning corn planting this year if it continues on too long.

The ethanol industry continues to cause problems for corn, as it gobbles up valuable resources; not only on an unproven alternative fuel, but one that may not to be grown profitably at these prices. That's what you get for government mandates and interference.

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