Corn prices have hit a two-year high in early morning trading, jumping more than 8 per cent.
CBOT December corn surged by an expanded daily limit of 45 cents, or 8.5 per cent, to $5.73¼ per bushel, the highest since September 2008. In the last two trading sessions, corn is up more than 15%.
Corn stocks are at their lowest levels in 14 years. The clueless USDA had earlier forecast a record corn crop this year. They have since cut yields estimates to 155.9 bushels per acre, down from an earlier estimate of 162.5 bushels. The monthly reduction in yield was the largest on record. Keep this in mind the next time someone suggests that government is the solution to crises. They regularly don't no up from down. Free market prices, on the other hand, signal to all off us how scarce a commodity is--no USDA required.
I've been following this guy [http://www.marketskeptics.com] since about Dec 2009. He's been calling out the USDA's bogus numbers since the prior growing season. The USDA had to pony up eventually and appears to have begun to do so. With respect to his Russian agri-fund investment pool, I would note the Russians have a less than stellar record on property rights, especially with commodities in high demand (Gazprom).
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