Corn traders remain optimistic despite hot, dry weather
Rain, rebounding prices lead to best week since July 2011
Despite unseasonably hot and dry weather in the Midwest, and growing demand for U.S. corn from China, 19 of 27 corn analysts surveyed by Bloomberg expect prices to gain during the week of May 21. Three analysts were neutral, the highest proportion since March 30.
Corn has jumped 9.1 percent since May 11, heading for the best week in almost a year and rebounding from a slump caused by the USDA predicting a record crop. Hedge funds and other speculators have raised bets on higher prices for two consecutive weeks, according to the Commodity Futures Trading Commission and reported by Bloomberg.
Weather services are predicting that Iowa, Illinois and Indiana, which produce 40 percent of the U.S. corn crop, will receive another month of above-normal temperatures. National Weather Service data shows that sections of Midwest have received 25 percent of normal rain since the second week of May.
Late June and early July temperatures will give analysts a better picture of 2012 crop yields.