Corn futures are making a run to recent highs and up for a third-day in a row. This run-up in prices is set to be the biggest monthly corn futures gain in prices since 2010 after the USDA said current corn plantings are trailing the five-year average.
The USDA claims about 19% of our domestic corn crop was planted (as of April 27) compared to only 6% a week earlier. The current five-year average should put plantings closer to 28%, but this lag behind the average is a reason why a “risk premium” has been built into current corn prices (since March).
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, had this to say regarding the current corn futures situation, “We are still below the 5-year average and with more rain on the way we could see plantings continue to lag. If poor weather continues to further delay corn plantings we could see farmers switching from some unplanted corn acres to soybean.”
Corn futures trend is up with no top yet in sight. If corn futures can manage to close with two consecutive higher closes above 524^2 (the April 9th high), I think we could be off to the races.
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