Thursday, July 15, 2010

Corn, Soybean Prices Soar on Weather Concerns

Prices for soybeans increased to their highest price levels since the early part of May, while corn soared to its highest level in six months on forecasts of continue hot, dry weather in parts of the U.S. over the next month and a half. That could cause some major damage to crops if the weather projections hold up.

Corn futures for December delivery increased 7.75 cents, or 2 percent, to $4.04 a bushel at 10:17 AM CDT on the Chicago Board of Trade, after rising to $4.10, the highest price since January 12.

Soybean futures for November delivery exploded by 15.75 cents, or 1.6 percent, to $9.7775 a bushel in Chicago after going as high as $9.855, the highest price level since May 5.

Analysts say rain will have to come soon to prevent significant damage to both crops, which together account for close $80 billion in value, both of which the U.S. leads the world in production and exports.

The western and eastern parts of the Midwest are being hit the hardest by the weather.

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