Corn futures are testing their recent low in prices and are poised to realize their biggest monthly price drop in nearly three years. Corn futures expectations is that supplies will be ample enough adding to the outlook of a record “bumper crop” for the US this year.
The USDA’s forecast of nearly 14B bushels of corn this year – the second highest ever – is looking to become reality with domestic corn crops said to be maturing in mostly good condition. Weather forecasters also call for increased precipitation for August following this months dryness that set in late in the month.
“Weather in the Midwest has been near ideal for farmers and with more rain on the way corn prices have had their steepest monthly decline in nearly 3 years,” statedDevin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his insight regarding the current corn futures situation. Brady added, “The risk premium that sent (corn futures) prices higher during the first half of the year has been erased as farmers anticipate a bumper crop.”
The trend in corn futures remains down, albeit slowing down at these current price levels. I am looking for some type of temporary spike higher before resetting “short” another corn futures position.
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