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CORN, SOYBEANS KEEP CLIMBING AHEAD OF USDA REPORT
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Corn for December delivery rose 16 cents, or 2 percent, to $8.165 per bushel. November soybeans rose 15.5 cents, or 1 percent, to $15.812 per bushel.
Prices for soybeans and corn have climbed all summer as a devastating drought wreaks havoc on crops. Analysts predict it could soon start affecting prices that shoppers pay in the grocery store. They'll have more clarity Friday, when the U.S. Department of Agriculture releases updated predictions on production for corn and soybeans and other crops.
Some analysts think the government is bound to step in decisively if the drought gets worse, perhaps helping farmers pay to bring in water, but it's not clear how much that would help. Rain in parts of the Midwest did raise hopes this week that some of the soybean crop can be salvaged. But some analysts believe that the corn crop, which is planted earlier and is further into its season, is beyond rescue.
No matter what the government does, it's crucial for people to adjust their demands for corn accordingly, Barclays analyst Sudakshina Unnikrishnan wrote in a note to clients Wednesday.
Sometimes, when the price of corn is rising, people who use it to feed livestock can buy wheat instead. But the price of wheat is also rising. On Wednesday, September wheat rose 10.25 cents, or roughly 1 percent, to $8.9925 per bushel.
"Friday's USDA supply estimates will catch the headlines," Unnikrishnan wrote, "but how the USDA deals with the necessary issue of demand rationing will be the key issue."
[link to www.breitbart.com]
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