Corn futures, in a one month period, have rallied and retreated .75 cents over precipitation concerns in the corn belt region of the Midwest. Corn futures are up .04 cents going into Thursday’s close currently trading just above $3.82 per bushel at the Chicago Board of Trade.
The rains in the state of Illinois alone are prompting state officials there to possibly request federal disaster assistance after receiving the most rain from May to present in the last 30 years! While Illinois is reported to have over 22 inches of rain between May & June, the water-logged fields might not reduce corn yields as much as it appears – according to an expert Midwestern analyst.
“In past years of similar heavy rains when things looked bleak for the corn harvest, the yields surprised the experts and this year is shaping up with similar statistics,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the fundamental assessment of the corn futures markets. Brady added, “It will take more time to get a clear picture and this suggests more volatility for corn (futures) this summer.”
The trend for corn futures is down and this particular market has sold off from its mid-July high near $4.55 per bushel with absolutely no retracement from July 14th. Corn futures is a market that the novice trader should stay away from, and for the professional it should require a contraction of volatility before taking any 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 CONDITION.
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