Overnight developments - new highs again for corn

Corn continues to run higher, backed by a reduced yield forecast from the USDA and a lower ending stocks figure. Heavy Midwest rains overnight have not damped bull's enthusiasm and corn is around 12c higher this morning adding to gains last night of around 16c.

Estimated U.S. inventories of 673 million bushels for the end of the 2008-09 season, down 53 percent from a year earlier, would represent 5.4 percent of expected annual consumption, or 20 days of use. That's down from 40 days estimated this year and the lowest since 1996 when reserves were projected to last 18 days.

Rainfall across the Midwest was as much as four times normal during the past 60 days, National Weather Service data showed. Midwest fields had as much as 12 inches (30 centimeters) of rain in the past week, it showed. Some areas may get another five inches in the next four days, increasing flooding and reducing the soil's nitrogen content, which may limit plant growth.

Soybeans are around 18c higher this morning amidst concerns that all this crop simply isn't going to get planted.

Wheat is around 6-7c firmer, "just because", dragged higher by corn & beans despite a global record output outlook.