Corn prices surged to a new record high Monday, as the worst drought in more than 50 years continues to plague more than half the country.

Almost 90% of the United States’ corn crops are in drought ravaged areas, according to the U.S. Department of Agriculture, and nearly 40% are situated in the hardest hit spots.

Corn prices have soared more than 50% during the past six weeks as the crops continue to shrivel in relentless dry heat throughout the Midwest. They jumped another 3% Monday to a record high of $8.17 per bushel on the Chicago Board of Trade.

The Teucrium Corn ETF (CORN), which tracks a basket corn futures contracts, gained 2.5%.

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A sizzling summer is leading to higher natty gas consumption and prices are ripping today.

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Oil is off a bit on worries that Europe will continue to see a slowdown. Markets are awaiting data on August 2 to see what the growth prospects are for Europe.

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“Gold climbed to a five-week high in New York on speculation central banks around the world will do more to spur growth.

Economists expect data today to show the U.S. economy expanded at the slowest pace in a year, increasing speculation the Federal Reserve will engage in a third round of quantitative easing. The dollar fell against the euro after European Central Bank President Mario Draghi said policy makers will do whatever is needed to save the single currency.”

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WTI is up $0.66…..

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The Stock Sage presents some technical analysis of gold.

See the charts here.

According to this article, water is the new gold for investors this century.

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WTI was up nearly 1% in overnight trade, but has pared those gains to be slightly negative for the moment.

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Concerns over global growth has taken oil down to the mat this morning. WTI is down $3 and Brent is down over $4

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Sabotage is expected for an explosion of an oil pipeline in Iraq. The pipeline carries oil directly to the Mediterranean. No one was hurt. Call me nuts, but this reminds me of oil spikes that came after Nigerian pipeline “attacks”.

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A historic drought continues to plague America’s farms causing corn crop yields to plunge and prices to surge.

However, investors are left wondering if they can capitalize on the phenomenon.

Waverly Advisors recently tackled the question.

Tactical Q&A: Grains –Too Late to Go Long?

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Long-term food crisis is just beginning, say analysts…

SAN FRANCISCO (MarketWatch) — More than four years after food inflation sparked a wave of riots around the world, consumers are facing the highest-ever prices for corn and may have seen the last of the rock-bottom prices for food staples.

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“I’ve been in the business more than 30 years and this is by far and away the most serious weather issue and supply and demand problem that I have seen by a mile,” said a senior executive at a trading house. “It’s not even comparable to 2007-08.”

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Last week some interweb bloggers pointed out that gold was manipulated and now we see the resurgence of oil manipulation.

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Oil has relaxed a bit coming in a little over 1% on growth concerns.

WTI is @ $91.51 down $ 1.15, Brent is down $1.03 @ $$106.77…

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WTI is up $1.19 @ $91.06…

“Oil rose a seventh day in New York, the longest run of gains since February, after U.S. gasoline supplies unexpectedly shrank and housing starts climbed, signaling fuel demand may increase amid an economic recovery.

Futures advanced as much as 1.5 percent to the highest level in seven weeks. Gasoline stockpiles decreased 1.8 million barrels last week, the Energy Department said in a report. They were forecast to climb by 1.2 million, according to a Bloomberg News survey. Crude inventories also fell and petroleum consumption rose for the third week. New U.S. home construction increased in June to the highest level in almost four years, figures from the Commerce Department showed.”

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“Mario Monti’s government is trying to attract as much as $18 billion in investment to Italy by relaxing a ban on offshore oil and gas exploration imposed by Silvio Berlusconi after the 2010 Gulf of Mexico spill.

The premier, who must jump-start the economy to help stem Italy’s debt crisis, last month ruled that companies such as Eni SpA (ENI), Edison SpA (EDN) and Royal Dutch Shell Plc (RDSA)can resume shallow- water projects within 12 kilometers (7 miles) of the coast they were forced to abandon in 2010. The decree needs Parliamentary approval and the lower house is set to debate it July 23.”

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WTI is down $0.44…

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Tom Flora walked into one of his corn fields in Delphi, Indiana, last week to survey land that until last month he expected would yield a bigger-than-average harvest. Eight rows in, he declared the crop a total loss.

“I’ve never seen this,” 63-year-old Flora said as he fingered the wilted brown leaves on a four-foot corn stalk that was half the normal height for this time of year and had cobs almost devoid of kernels. “This is good dirt here, but not this year. It’s too dry. I doubt this will produce anything.”

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Nice graphs and analysis of the effect of the drought on the U.S. corn crop.

Read the article here.