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Record Snows Portends Record High Grain Crop Yields

|Includes: Archer Daniels Midland Co. (ADM)

Most of the news on the recent snowfall is centered on the East Coast but the Mid-West is getting their share.  These high amounts of snow will boost soil moisture guaranteeing a record high yielding crop for most of the corn belt and some Eastern states too.  Ohio New York and Pennsylvania have significant acreages that will greatly benefit to boost the 2010 corn crop to be the highest ever on record.

Farmers would do well to hedge their crop with the current up-tic on price.  Come harvest time this fall, corn could go below $1 a bushel coming out of the field.

Investors can benefit from the corn glut by buying companies involved with milling, marketing and transport of the commodity.  Archibald Midland (NYSE:ADM) and Corn Products (CPO) instantly come tom mind but my best play is the Mexican miller - Gruma (GMK.)  



Disclosure: Long GMK