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Mid-Session Corn Market Report for 8/20/2008

December corn opened 8 1/2 cents higher on the day at 593 and established an early range of 586 to 597 3/4. The market opened higher as expected on strength in crude oil and gold along with weather concerns in the US according to floor traders. Funds were also said to be small buyers in the early going. However, prices eased somewhat into mid session after crude pulled back from its highs. In addition, reports from around the Midwest are tending not to confirm fears of problems with corn yields. Observers are confirming the lack of maturity, though, and traders say that this is contributing to growing concern over the potential for frost damage in September. In that same vein, the World Meteorological Organization said today that the first half of 2008 was the coolest such period for the world in at least 5 years. Weather is expected to remain drier than normal into next week in most areas of the Midwest, continuing the trend of the past 10 days or longer in many areas. Basis levels were steady at the Gulf again today with traders continuing to report that the barge freight market is firm on traffic problems on the Upper Mississippi.




 
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