Corn futures may be projecting demand as a major bank declares domestic corn sowings will remain steady with last year’s thanks to appealing economics. Corn futures are up .02 cents at this time currently trading at $3.715 per bushel at the Chicago Board of Trade.
Corn sowings in 2015 were at/near 88M acres and despite corn yields expected to be 10% less than the year before because of planting in a second year running, corn is expected to be a better choice cash crop. Corn is winning the acreage by holding steady as soybeans and wheat are expected to lose acreage.
“Clearly farmers are gauging the price ratio of corn versus other crops and/or grains,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his fundamental assessment of the corn futures market. Craney added, “Farmers only have so much land – and they’re not only making hay – so they want to find the most profitable crop for the next harvest.”
Corn futures trend (on daily charts) have recently shown signs of a potential uptrend forming. We can expect corn futures to test the early month $3.50 lows hopefully soon.
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