A fine stretch of weather — finally — over much of the Midwest is speeding the 2008 corn crop towards maturity. Still, it will be weeks, at best, before more is known about how many bushels farmers grew this year. With 12 billion bushels or so needing a home, harvest pressure is beginning to exert its usual restraining force on prices.
Of course, the market was already in a straight jacket anyway, due to the chaos in the financial markets. Even if a bailout bill is passed this week in Washington, effects of the crisis could linger. In the short-term, investment money may be wary of taking additional risk in commodities. In the long-term, a weakened global economy could test, perhaps for several years, the notion of rising world demand.
As a result, the market is likely to ignore fundamentals, for now. To read Bryce Knorr's complete weekly corn review, click HERE.