(July 18 2012)
U.S. corn turned higher today, resuming its biggest rally since 2008 as dry conditions once again threatened the crop. Soybeans also moved higher, with soybean meal futures surging to an all-time high.
Soybean futures are now up nearly 30 percent from summer lows, with the benchmark November holding near its contract high of $16.04-1/2 per bushel. Soymeal futures hit an all-time high of $509.60 per ton as farmers turn to soybean meal as an alternative feed supplies due to thin corn supplies.
Chicago Board of Trade wheat erased its losses and headed higher along with corn and soybeans, further support for wheat came from drought conditions in Kazakhstan and Russia and harvest delays in France.
Chicago Board of Trade spot September corn rose 1.7 percent to $7.92-1/2 a bushel, having touched a 13-month high of 7.96-1/2 a bushel on Tuesday, close to the record high of $7.99-3/4 set last summer. Chicago November soybeans were up 1.0 percent at $16.05-3/4 a bushel. Chicago September wheat rose 1.0 percent to $8.93-1/2 a bushel.
The forecast for the U.S. Midwest, where the drought is centered is for more hot, dry weather.