Output concerns triggers price increase

With the worry of declining crops levels and ratings that will lead to smaller than expected harvests. Traders are watching closely at the weather because farmers need favourable conditions to grow larger crops to replenish low inventories.

The good-excellent rating for corn is down 10 percentage points from last year, but the USDA's yield estimate of 158.7 bushels an acre is up almost six bushels an acre from last year. That leads market participants to "believe the yield numbers have nowhere to go but down," said Tim Hannagan, analyst for PFG Best, a brokerage in Chicago. Read more ...

This blog is written by Martin Little, The Global Miller, published and supported by the GFMT Magazine and the International Milling Directory from Perendale Publishers