Corn futures extended its gains early in the trading session to trade at highs not seen since last month, but has since abruptly turned around to trade lower for the day. Corn futures are currently $3.91 per bushel, down .04 cents at the Chicago Board of Trade.
Corn futures have gained 5% since last Wednesday’s low reportedly from technical buying once futures broke above key moving averages after the USDA Crop Progress report. A US Dollar declining from it’s highs has also played a role in stronger corn, I suspect.
Kevin Riordan, director of research at Capital Trading Group in Chicago, shared his fundamental view regarding the current corn futures situation by stating, “We know the supply is abundant, but we don’t know what the dollar wants to do.” Riordan adds, “With corn being the country’s biggest cash-crop, importers will still hold out until a clearer picture with the currency situation unfolds.”
The trend in corn futures has technically turned “up” with today’s very brief spike higher. With the complete and immediate turn-around with corn futures following that high, I will view it as a false signal until today’s high is to be taken out.
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.