Corn Futures Heading for Biggest Monthly Decline in Three Years

Corn futures are testing their recent low in prices and are poised to realize their biggest monthly price drop in nearly three years. Corn futures expectations is that supplies will be ample enough adding to the outlook of a record “bumper crop” for the US this year. The USDA’s forecast of nearly 14B bushels of corn this year – the second highest ever – is looking to become reality with domestic corn crops said to be maturing in mostly good condition. Weather forecasters also call for increased precipitation for August following this months dryness that set in late in the month. “Weather in the Midwest has been near ideal for farmers and with more rain on the way corn prices have had their steepest monthly decline in nearly 3 years,” statedDevin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his insight regarding the current corn futures situation.  Brady added, “The risk premium that sent (corn futures) prices higher during the first half of the year has been erased as farmers anticipate a bumper crop.” The trend in corn futures remains down, albeit slowing down at these current price levels. I am looking for some type of temporary spike higher before resetting “short” another corn futures position. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Soybeans Futures Reverse Coarse on Overview US Dryness Won’t Be Severe

Soybean futures reversed course today, after rallying form last week, on the outlook that dryer weather in the forecast won’t be bad enough to erode yields. Soybean futures are down .12c today while earlier erasing all of yesterday’s pit-session gains. Forecasts for the Midwest call for limited rainfall in the forthcoming week with temperatures cool enough to minimize crop stress and keeping more moisture in the soil. The USDA adds that 71% US soybean crops are in “good to excellent” shape and in the best condition for this time of the year since 1994. “Soybeans rallied yesterday because of renewed buying interest from China. However, rains in the forecast have replaced the concerns for dryness and given back the previous day’s gains,” stated Laura Taylor, a senior commodities broker at RJO Futures in Chicago, sharing her insight regarding the current soybean futures situation. The trend for soybean futures remains down despite the recent rally. Soybean futures may be in the initial process of testing last week’s low and we are short this market from early in today’s session. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Schad Commodity’s Weekend Report: An Insider’s View of the Next Big Market Move

Once each week, usually on Friday evenings, we update our personal weekly commodity trading charts and review them for changes in “net long” or, “net short” holdings between the big commercial commodity traders, large speculators, and the usually uninformed public. This is our professional analysis of “the bigger picture” and current dynamics for each market which provide a spyglass view of the BIG commercial traders and what they are currently doing to influence the futures markets. As you may already know, insider trading with stocks on Wall Street is very illegal. However, in the commodity trading industry, large/commercial traders MUST report their positions EACH WEEK to the CFTC regulatory body, hence, we monitor them on a weekly basis. Although the futures markets themselves will ultimately provide the most accurate illustration of trend, these (weekly) charts we’ve identified, serve to forewarn us of the next possible bigger move. Here are the commodity markets which illustrate the changing bigger picture for them: UP Trending Futures Markets:  Feeder Cattle, Silver and Copper (New this week.) DOWN Trending Futures Markets:  Euro-currency, Soybeans, Wheat, Cotton, Lean Hogs, Kansas Wheat, Natural Gas, Sugar, Corn, Soybean Oil & Soymeal ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Bumper Crop in India Sets Back Cotton Futures

Cotton futures have tanked since the news reported India’s biggest cotton trader stated his nation’s cotton production is set to reach an all-time high. India’s farmers evidentially are switching from soybeans & peanuts to cotton with the delays in monsoon rains. According to the Chairman of Cotton Corporation of India, that nation’s cotton harvest is expected to expand little more than 2.5% to 40M bales in the fiscal year starting October 1st. This expected bumper crop in India may curb any significant rally in cotton prices that have already fallen 20% this year. “With the time window for sowing soybeans and peanuts behind the Indian farmers, cotton seems to be the last resort, and will add to already committed acreage,” stated Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his insight regarding the current cotton futures situation. Cotton futures trend is down despite the lengthy sideways action we endured these past two weeks. We are short cotton futures since early this morning and this market continues to make new lows. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Corn Futures Finding Support Near Four-Year Lows

Corn futures appear to be stalling near four-year lows on the outlook of favorable weather here in the US. The US is the biggest corn exporter in the world, and it appears the global corn supply will be rising. In the past 12 months, corn futures have fallen 24% (soybeans shed only 16%, and wheat dropped 19%) when it was realized the global inventory is rising. The USDA report almost two weeks ago that this will be the second year in a row corn has seen a “bumper crop” and global reserves rising to its highest in 14 years. “Weather remains the focus in the corn market, and the weather is ideal for this time of year. We continue to see new lows in December Corn as the market prices in what is believed to be an outstanding crop,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, with his insight regarding the current corn futures situation.Craney added, “However, the September Corn contract is gaining a bit on the December contract as farmers sit on old crop corn.” The trend for corn futures is down with now bottom in sight. We exited corn futures today, but am now looking for a temporary bounce in corn prices to get short again. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...