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Corn sets record close

Updated: 04/04/2011 @ 2:25pm

CHICAGO, Illinois (Agriculture.com)--The CME Group May corn contract reached record levels, as the trade remains nervous about tight supplies Monday.

The May corn futures closed 24 1/4 cents higher at $7.60 1/4, a new contract settlement record. The last record was $7.54 3/4 set in June 2008. An all-time intraday high was equaled at $7.65. The May soybean contract closed 9 3/4 cents lower at $13.84. The May wheat futures ended 30 1/2 cents higher at $7.90. The May soybean meal futures settled $3.90 per short ton lower at $357.00. The July soyoil futures closed $0.20 higher at $58.88.

In the outside markets, the NYMEX crude oil is $0.54 per barrel higher, the dollar is higher and the Dow Jones Industrials are up 1 point.

Tim Hannagan, PFGBest.com senior grain analyst, says tight stocks push corn higher.

"Corn traders came in as buyers with the thinking that the Quarterly Stocks Reports last Friday, coming in almost 200 m.b. lower than estimates, sets up this Friday's USDA Monthly Supply/Demand Report to also drop ending stocks for old crop year as well."

Hannagan adds, "There's no room left here to cut ending stocks already too tight with the growing season woes yet to come." 

Wheat sees another warmer and drier week ahead for our winter wheat crop, he says.

This afternoon at 3pm Central Time, USDA will release its first-of-the-year Crop Progress Report. "All look for a historicaly low number. Last year, the first report came in shockingly higher than expected, casting doubt on what the government reporting system was thinking, setting the bar that high. So, we await tonight's figure to use

as a starting point for wheat," Hannagan says.

Meanwhile, the market still has higher objectives, technically, one CME Group corn floor trader says. "We broke through trend-line to the upside, possibly headed for 7.71 or higher. We would have to get back down through 7.36 to change direction ideas. Keep in mind, today's limit is $7.66."

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