Corn futures have managed to work its way to a seven-day high one day after the USDA revised its outlook for domestic and global stockpile supply lower. Corn futures came a quarter cent from reaching $3.94 per bushel in earlier trading, and currently at $3.92 at the Chicago Board of Trade.
The USDA now affirms our domestic inventories to be 50M bushels less than their previous estimate at the end of this 2014-15 growing season. The downward revision is believed to be reflective of increased feed demand from livestock producers and from overseas.
“It’s hard to argue against the demand for US corn with a stronger US dollar affecting its price,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, sharing his fundamental analysis regarding the current corn futures situation. Riordan added, “The fact that both domestic and int’l inventories were reduced lower should be enough proof and hopefully out of this sideways trading action.”
The trend for corn, albeit technically down, has indeed been trading “sideways” for about a month and a half now. When corn futures finally decides it’s direction and breaks out, the move could be substantial (from my experience).
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.