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As recently discussed at bullbeartrader.com, and followed-up yesterday with another article from Bloomberg, heavy rain is causing corn prices to reach record levels (see video here).

Prices have essentially risen for 6 straight days after Bloomberg reported a week ago how heavy rains would cut the corn crop estimates. Global inventories are forecast to fall to a 24-year low as prices head higher for the fourth straight year.

As reported in the recent article:

Corn's yield potential falls unless plants have emerged from the ground before the end of May in most of the Midwest. Corn planted in wet, cool soils develops shallow roots, increasing the threat of damage from hot, dry weather in July and August. About 60 percent of the corn crop in the U.S., the largest exporter of the grain, was in good or excellent condition as of June 8, down from 63 percent a week earlier, and 77 percent a year earlier, the USDA said June 9 in a report. An estimated 89 percent of the corn crop had emerged from the ground as of June 8, compared with 98 percent a year ago and the five-year average of 89 percent, the USDA said.

As the summer heat begins to increase in July and August, there is an expectation that the USDA will cut its crop estimates even further. Wheat (up 48%), rice (up 62%), and soybeans (up 64%) have also all been rising over the last year.

Source: Corn Reaching Record Price Levels As Heavy Rains Continue