CBOT Corn closes higher despite bearish USDA numbers

The corn market shrugged off the USDA coming out with quite bearish 2008 US production numbers of 12.288 billion bushels & a yield of 155 bu/acre, the second-highest on record. Both numbers were well above trade estimates, yet the corn complex managed to throw off it's initial lower opening to close higher.

September corn closed up 11 3/4 cents to $5.09 per bushel.

Many traders feel USDA missed the mark and have overstated yield and production and are "selling the rumour, and buying the fact."

After dropping $3/bushel from recent record highs breaking through and staying below $5 is proving a difficult nut to crack.

As with soybeans, the trade is concious that we have a late maturing crop here & that is going to leave it vulnerable to early frosts, much more so than normal with crop development 2-3 weeks behind normal.