Friday, September 12, 2008

Corn Limit Up on Revised Downward USDA Estimate

The grains have been mixed today, influenced by the price of crude oil, the reversal of the US Dollar's recent fortunes, and this morning's USDA downward revision. Corn has now reached its limit up price this morning, a sign that perhaps the downtrend for corn may be nearing its end. This revision is particularly noteworthy because for the past three years, the USDA has revised its estimates higher in September, only to revise them downward in future months. If the USDA revised its estimate downward today, what will happen next month?