06/11/08 Corn yield report gets market attention

On Tuesday Chicago July wheat was up 20 ½ to 8.09. Kansas City July added 21 but Minneapolis lost a dime at 9.86. But corn made the news. Reaction to USDA's bullish acknowledgment of corn's yield troubles was muted through most of Tuesday's session, but sellers eventually backed off and the December contract surpassed the $7 level for the first time in history. July corn up 16 to 6.73 ¼. Analyst Mark Chido was surprised by what the government that got the markets' attention yesterday. CHIDO "The government came out and dropped the yield down to 148.9. I've never seen the government drop the yield on June first. I don't know what they know that we don't know or can't see in the market but it's very significant." Portland cash white last half July 8.05. Pacific Northwest HRW 11.5 percent protein August new crop 9.17. Dark Northern Spring 14 percent protein August 10.03. Live and feeder contracts are moderately higher, bolstered by short covering and news of stronger box sales. August live cattle up 65 to 99.62 August feeders up 30 to 110.97 July Class III milk at Chicago 21.10 off .16.