10/07/2012 (Live Trading News) - Dry skies threaten US Corn crop as Heat Wave breaks

The withering US Corn crop is gaining some respite from a record Heat Wave this week but new weather forecasts offered scant signs of the rainfall it urgently needs to avoid the worst drought damage in nearly 25 yrs.

As the majority of a near-record-size US Corn area is now set to enter the Key phase of pollination, a period when hot and dry conditions can cause irrevocable damage, the lack of moisture threatens to extend a rally that has already propelled corn prices more than a 3rd higher since mid-June.

Global weather concerns lift Palm Oil futures

Malaysian crude Palm Oil futures rose on worries that unfavorable weather, from the United States to India, could crimp oilseed production and tighten global supply of cooking oil during a peak season for Asian demand.

“Palm Oil is taking a free ride. It will take more of the market from Soybean Oil, especially during the festival season on the Asian side,” said a trader with a foreign commodities brokerage.