Corn futures can be receiving a boost by the situation of the world’s third biggest exporter of corn – Ukraine – because of that county’s dry weather is reportedly providing a lesser yield than expected for their corn crop. Corn futures are up .02 cents today currently trading at $3.75 per bushel today at the Chicago Board of Trade.
A European-agriculture based group stated the harvest for Ukraine’s 127K hectares of designated corn crop land are now expected to produce less than expected corn yields (than previously forecasted) due to the dry conditions in July & August. Last year the country produced 9.3 tons per hectare, but currently at 60% completed harvest it is looking more like 7.3 tons per hectare.
“There is much corn in the global stockpiles, but unforeseen circumstances such as weather can potentially turn things around for the corn (futures) market,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental assessment of the corn futures market. Brady adds, “Another aspect to take into account is less feed for livestock and poultry in that region of the world. More markets over there can be impacted because of corn.”
Corn futures trend has just rolled over to down last week. The up-move in corn futures earlier this month came as a surprise going into harvest, but the markets are always “in the right.”
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