Corn futures appear to be stalling near four-year lows on the outlook of favorable weather here in the US. The US is the biggest corn exporter in the world, and it appears the global corn supply will be rising.
In the past 12 months, corn futures have fallen 24% (soybeans shed only 16%, and wheat dropped 19%) when it was realized the global inventory is rising. The USDA report almost two weeks ago that this will be the second year in a row corn has seen a “bumper crop” and global reserves rising to its highest in 14 years.
“Weather remains the focus in the corn market, and the weather is ideal for this time of year. We continue to see new lows in December Corn as the market prices in what is believed to be an outstanding crop,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, with his insight regarding the current corn futures situation.Craney added, “However, the September Corn contract is gaining a bit on the December contract as farmers sit on old crop corn.”
The trend for corn futures is down with now bottom in sight. We exited corn futures today, but am now looking for a temporary bounce in corn prices to get short again.
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