US corn prices reach $6.43 on weather concerns as farmers mull replanting to recover from rains
Bad weather in the US Midwest has pushed corn futures to an all-time high of $6.43 per bushel, up 4.3 percent on Friday, based on what farmers are calling the worst weather since 1993. Replanting corn damaged by May rains is one option for farmers, or replacing corn with soybeans, which have a shorter growing season.
The International Grains Council recently forecast global grain production for 2009 at 650 million tons, up 5 million tons from the April forecast, but said that increased production would be absorbed by increased ethanol demand. The Council said that global wheat prices have dropped 25-50 percent, reflecting an expectation of increased supplies that have caused a 70 percent drop in wheat futures prices at the Chicago Board of Trade. Meanwhile, corn futures have increased 30 percent on expectations of short supply from increased ethanol production.
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