Chicago corn futures smashed through the 700c mark last night closing at 740c/bu (AUD$378). That’s a 200.75c/bu (AUD$102) increase since this time last month. Our local sorghum value, a product traditionally hedged using US corn futures, as Chicago corn is supposed to be the litmus paper for world feed grain values, has clawed an incredible AUD$8.00 higher over the same time frame.
Not to sound too cynical though, I have to admit that the rally in corn is only due to a massive feed grain shortage in China, the world’s biggest feed grain consumer and a potential drought in the USA the world biggest corn producer (and Brazil), and the lowest US opening stocks for corn in many years due to the huge increase in Chinese corn imports….. nothing terribly influencing to global feed values (do you sense the sarcasm yet), I mean why would that be encouraging a massive spike in local sorghum values.
I really need to write these comments from a less emotive perspective don’t I.

Corn futures dragged both wheat and soybean futures higher. Spring wheat futures at Minneapolis was fuelled by its own fundamental issues. The weekly weather forecast for the US spring wheat belt and the Canadian Prairies remains dry. The US corn belt is predicted to see some storms on Monday / Tuesday. There may even be some scattered storms across N.Dakota and MN but not much rain. Parts of the Canadian durum belt may even see further snowfall next week. Keep an eye on the crop progress report Tuesday. Dry weather is also becoming a bit of feature for NW France, the main French wheat area. Eastern Ukraine and S.Russia could also use a drink right now.