Corn Futures at a Crossroads as China Set to Cut Corn Production

Corn futures have halted its $1.20 downtrend since mid-June as Reuters has broken the news about China planning to cut corn production. Corn futures are up a mere .01 cent today currently trading at $3.36 per bushel for December delivery at the Chicago Board of Trade. This would be China’s first cut in corn production in 13 years which is reported to be by 3.29M acres, but according to the USDA, China still has 37M hectares devoted to corn – 14M hectares more since 2001. This cut in production is said to be an attempt to reduce massive stockpiles of about 250M tons in inventory. Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, shared her fundamental view of the corn futures market by stating, “Its obvious to see with so much corn in China’s inventory, there won’t be any imports of corn for them any time soon.” Bourbeau adds, “Now what will this do for our corn (futures) market?” Corn futures trend is “down” with no bottom yet in sight. In my opinion, corn futures prices are treading near production costs so farmers may be wanting to do something about this… 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 Extend Retreat Amid Favorable Weather Conditions

Corn futures have seen their sixth down day in the last seven sessions with prices slumping nearly .60c a bushel since only last week as weather concerns have subsided. Corn futures are down .055c today currently trading at $3.985 per bushel at the Chicago Board of Trade. The USDA provided a better than expected report in their weekly corn crop ratings earlier this week and even adding no significant damage yet to be seen as harvest is well underway. Now that the weather prospects are becoming more favorable, the chances of corn becoming stressed before its pollination period is subsiding. “We have all been following the (corn futures) crop weather story closely,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his fundamental assessment of the corn futures market. Plotkin added, “All the areas we were concerned with for dryness appears to have cooler and wetter weather ahead, and the (corn futures) market is reflecting this development.” Corn futures technical trend remains “up” even after this recent fallout. However, if corn futures were to take out today’s low, it could possibly change the trend downward. 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 Extend Gains With 75% Crop Planted and Almost One-Half Emerged

Corn futures are strong coming back more than .30c from earlier month lows despite being ahead of planting schedule and nearly half of the national crop emerging. Corn futures are up .025c today currently trading at $3.995 per bushel at the Chicago Board of Trade. The USDA reports 75% of the domestic corn crop planted which is 5% ahead of schedule for this time of year based on the current five-year average, and the states leading the planting of 18 states total are Minnesota (96% planted); Illinois & North Carolina ( both 92%); Tennessee (90%); and Iowa (89%). The states picking-up the lower average are Colorado (53%); Pennsylvania (64%); Indiana & North Dakota (both 68%); and Michigan & Ohio (both 71%). “Corn plantings are coming along at a good pace – eleven percent better than just this time last week,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental assessment of the corn futures market. Brady added, “Although not aware of current export numbers, with a thirty-cent rise from just last week we may be looking at a demand picture going into the summer months.” The trend for corn futures has returned back “up” only yesterday. Corn futures do continue to trade within a range between $4.07 on the high-side and $3.51 on the low-side both established last month. 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 Pullback After Surge in Plantings Plunge

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). ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS...

Grain Futures Lower as Outlook Appears to Add to Glut

Corn futures & soybean futures stockpiles may be large now, but farmers in the Midwest seem to have no choice but to add to the grain glut. Corn futures & soybeans ended down .06 & .0775 settling near $3.67 & $9.0825 (respectively) today at the Chicago Board of Trade. Even though farmers claim the crops won’t be profitable, with bills to pay they can’t afford to leave land idle. US farm income is reportedly at a 14-year low. “Here in the Midwest, where I grew-up, the name of the game for all farmers and grain producers is to make it through the season, pay your bills, and do what needs to be done to get to the next harvest,” said Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, sharing her fundamental assessment of the grain futures market. Bourbeau added, “There is not much choice, especially for the small corn and soybean farmer, to plant more during a glut with the anticipation to at least break even.” The trend for corn & soybean futures are both technically “up” – albeit in not-so-strong trends. Corn futures & soybeans appear to be in buy zones at this time, however not in front of a major USDA crop report tomorrow morning. 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...

Optimistic Estimate for Argentine Production Lowers Corn Futures

Corn futures seem to lack any strength with plentiful global supplies and now a new report out of Argentina suggesting its going to be another boom year for corn production there. Corn futures ended the day down three-quarters of one cent to just above $3.60 per bushel at the Chicago Board of Trade today. Today the USDA raised its official estimate for Argentine corn production for their 2015-2016 harvest by an additional 1.4M tons (to 27M tons total) equal to last years record bumper-crop. Included in this estimate is the reported additional 200K acres of corn seeding encouraged by the government. Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the corn futures market by stating, “I understand the Argentine government helped to improve corn profitability for their farmers there by eliminating taxes on corn exports.” Craney added, “This is a major hand-up for grain farmers there with this kind of incentive.” Corn futures trend has been a roller-coaster since last summer trading above and below its 18-day moving average for a few weeks at a time. Corn futures are at a crossroads at this time in the middle of its .25 cent trading range. 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...