The significantly smaller grain stocks for corn, fewer acres being planted this year, combined with delayed planting necessitated by rainy weather in the grain-growing regions, is pushing corn prices into record territory for a second day today. If the rainy weather persists, it may reduce corn planting even more, thus pushing prices still higher. Corn is emerging as the grain in shortest supply early in the growing season for 2008. Demand is also very solid and growing, especially with nearly 1/3 of America's corn being used to produce ethanol. This short supply and stronger demand is driving corn prices still higher today, as shown in this chart of the 3 minute and tick charts for today.
Note in this daily chart (below) for corn that two days of new record high prices have been set, including new closing highs, and eight consecutive higher closes have also been achieved. That's very bullish for corn prices! If corn prices continue like this, especially if we reach the upper price limit today, we will soon see expanded lock limits and higher margins, just as we have with the other grains. Time to take advantage while I can of the lower margin.
