Corn futures have rebounded 50% of the March 31st plunge following the USDA report which said sowings for corn will be much higher than thought this year with soybeans and wheat taking a back seat. Corn futures are up almost a penny currently trading just under $3.58 per bushel at the Chicago Mercantile Exchange.
Late last week it was reported by the USDA farmers here in the US will sow just over 93.5M acres of corn for this year’s harvest – following a survey of growers, this is the third biggest amount of acreage since WWII. This is an increase of 5.6M acres from last year’s sowings, and well above the 90M acres that the USDA was expecting in their prior estimates.
“Much, much corn already in storage and if the weather is favorable, then we may see a glut like we haven’t seen in a very long time,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his fundamental assessment of the corn futures market. Craney added, “Farmers will try their best just to break-even on their corn crops just to pay their bills.”
The trend for corn futures had turned up in the latter part of last month, but quickly resumed back down with the overall longer-term trend. This is the time of year that corn futures is supposed to be heading higher into June/July period, but I don’t see this happening anytime soon (or perhaps “this” year).
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