Strong gains quickly developed in the corn markets Tuesday, as there is more focus on weather conditions surrounding new crop corn production. This pushed September corn futures 18 cents per bushel higher, while December futures rallied 21 cents per bushel.
The lack of uncertainty about growing conditions over the next month and late development of the crop is once again drawing buyer interest into the market. The higher production costs associated with corn price gains led to strong buyer support in nearby ethanol futures.
The focus has now moved away from short-term consumer demand and is swinging back to potential cost of production and overall margin. This led to 3-cent gains through most of the fall and winter contracts.
Rick Kment can be reached at email@example.com
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