Corn! Why It’s Hot Now
The CPI for June was unchanged. Core CPI rose +.10, better than expected
jobless claims rose 16,000 to 336,000. The 4-week moving average is 320,750.
Retail sales for June rose +1.7%, better than expected, driven in part by auto
sales.
China’s oil consumption declined 1% in Q2 from the
comparable quarter a year ago. In 2003, China’s oil use grew 11% and in
2004 it grew 15.4%. This, according to the International Energy Agency. Analysts
are somewhat mystified about this.
Rumor has it that a U.S. appeals court will overturn the prior
ruling that banned importation of Canadian cattle.
Corn made a one-year high as traders were concerned
hot, dry weather will stay in the Midwest. Temperatures are averaging about 5
degrees above normal for the past three weeks West of the Mississippi. Corn has
risen 11% in the past month and for the year, up 24%. Soybeans have done
well this year, up 37%.
Brice Wightman