Grain Prices Move Higher
Chicago--Planting delays in Illinois and other mid-western states helped push corn past $4 a bushel in cash markets Monday for the first time since the 2008 harvest.
Grain prices, led by news of tight supplies and lower production in Brazil and Argentina, are approaching $12 a bushel, which is $3.50 higher than prices on March 1. Rising corn prices are still far short of the $7-plus territory of a year ago. Some of the frustration over last year’s price volatility, which added almost a dollar to corn value in one week, was directed at managers of pension funds accused of shifting money from the faltering stock market to the soaring grain market.
There are still some indications of outside influence again in 2009. Rising oil prices may also be contributing to upward pressure on corn. Grain prices now follow crude, and higher crude oil prices tend to make production of grain-based ethanol and biodiesel fuel more profitable.