$8 corn? Not quite yet
Weather the main factor moving ahead; Farmers discuss pursuit of a market price point
Jeff Caldwell
Agriculture Online News and Features Editor
6/16/2008, 1:08 PM CDT
In the electronic trading session on the night of Father's Day, the $8 threshold was surpassed. Then, the following morning, the March '09 futures contract opened around $8.00. Are these signs that the daily trading range for the nearby contracts will soon see an 8 in front of them?
While it's certainly within the realm of possibility, this week's weather forecast is the big reason why $8 corn may not be an inevitability just yet.
"Right now, the forecast for this week is mostly dry. We have had a lot of flooding, but most of that has been factored into the market already," says Grainanalyst.com floor trader and market analyst Vic Lespinasse. "To make it go higher from here [in the short term], we need some additional new weather problems. Right now, we've rallied enough, but that's not to say we won't rally further if the weather turns bad again."
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