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FIVE DOLLAR CORN?

When contemplating the lead commodity for this article I initially settled on the examination of the Australian Dollar which has enjoyed a significant rally over the past month.  But a funny thing happened as I headed to the keyboard; an extremely bullish corn report caught the grain trade by surprise so Corn becomes the headliner.

Corn:  The USDA projected the ending stocks of corn for 2006/2007 at 1.141 billion bushels.  Let me explain for those not familiar with the term “ending stocks”, it means the amount of surplus corn on hand at the end of 2007.  When compared to the average trade guesses of 1.523 billion bushels and viewed as part of world ending stocks the report was simply seen as extremely bullish.   How friendly?  World ending stocks for the 2007/2007 season was put at 92.26 million tones, which is the lowest world ending stocks since 1975 (see 1975 futures chart), and the lowest stocks/usage on record since at least 1960.  More...

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