Corn futures are finding their way lower after the USDA Crop Production report released earlier this morning confirmed what analysts were predicting. Corn inventories before 2015’s harvest will be higher than predicted and will surpass the 2013 bumper crop.
Corn is the biggest domestic crop and the 2013 value was just over $62.5B dollars. Corn futures had gained more than 5% earlier this year when US exports surged and record livestock prices boosted demand for corn as animal feed.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, had this to say regarding the current corn futures situation, “Today’s USDA crop report confirmed the recent fall in corn, as current U.S. stockpiles of the grain and projections for this year’s harvest came in at high levels. Adding to the pressure on the market is the forecast for further mild and wet growing conditions, as well as this week’s crop progress report which showed the current crop ratings at good to excellent for three quarters of the planted corn.”
Corn futures trend is down with no bottom yet in sight. Next support level for corn futures appears to be .20c lower. I will require a pull-back in prices before initiating a short position.
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.