July Corn finished down 1 at 629 1/4, 9 3/4 off the high and 6 up from the low. December Corn closed up 3 3/4 at 650. This was 6 1/2 up from the low and 5 1/2 off the high.

Old and new crop corn contracts made new all-time highs overnight and again on the open today. The higher open came in line with higher openings in soybeans and wheat, but corn then traded lower into mid session. New crop contracts gained on old crop during the day with new crop finishing the day higher and old crop finishing marginally lower. While the USDA's Supply and Demand report was initially viewed as supportive to corn, sharply higher prices for soybeans may have generated liquidation of long corn/short soybean positions according to one floor trader. The USDA's Supply and Demand Report raised ending stocks for the 2007/08 marketing year to 1.383 billion bushels compared to 1.283 billion bushels last month. This increase was due to a decline in estimated ethanol usage to 3.0 billion bushels for the 2007/08 crop year. For the 2008/2009 season, the USDA pegged ending stocks at just 763 million bushels. Ethanol demand is expected to jump to 4.0 billion for 2008/09. The USDA also assumes a 400 million bushel decline in corn exports next year and an 850 million bushel decline in feed usage. World corn ending stocks for the 2007/08 season were pegged at 109.69 million tonnes vs. 102.97 million tonnes last month. New crop (2008/09) ending world stocks were pegged at just 99.03 million tonnes. The 10 million tonne drawdown in ending stocks drives the world corn stocks/usage to just 12.6%. This is the lowest world ending stocks since 1983 and the lowest stocks/usage ratio since 1973. Wet weather with cooler than normal temperatures remain in the forecast for major growing areas well into next week. Basis levels were steady at the Gulf again today with traders there still reporting a well-stocked export pipeline in corn.

July Rice finished up 0.625 at 22.975, 0.525 off the high and 1.225 up from the low.