Corn futures have dropped below $4.00 per bushel for the first time since this time in 2010. The US is the world’s biggest grower of corn and the prevailing outlook for corn futures is that there will be plenty enough rain to boost yields for this year’s harvest.
Forecasts for preferred weather in the US corn-belt over the next week will favor the crops. Global stockpiles of corn are expected to rise to the highest since 2000 before the Northern Hemisphere’s 2015 harvest.
Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current corn futures situation, “The bears continue to be in control of the Corn market and it’s hard to see an end to their dominance.” Riordan adds, “The weather looks ideal and in the next few weeks It’s likely that we’ll pollinate two-thirds of the crop.”
Corn futures are down with no bottom yet in sight. Corn futures started this leg down a week-and-a-half ago following the end-of-month USDA Crop Progress report – a report that I traditionally stand aside from. I am “speculating” we will see a bounce following Friday’s report.
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