Corn futures were initially lower in this morning’s trading on the outlook Monday’s USDA report will show even larger domestic grain crops than previously expected. Corn futures has since rebounded into the black currently trading up .03 per bushel at the Chicago Board of Trade.
A new survey of expert analysts now claim corn farmers may harvest over 14.5B bushels of corn – which would be the most ever, and larger than last months forecast of 14.475B bushels. Corn is the USA’s number one cash crop (followed by soybeans, then “hay,” and wheat) and also the biggest grower of corn in the world.
Kevin Riordan, director of research at Capital Trading Group in Chicago, shared his insight regarding the current corn futures situation by stating today, “Heading into next week’s USDA (crop report), traders are hesitating establishing aggressive positions. Many traders believe the report will reflect an increase in production in both corn and soybeans.” Riordan added, “Possibly a pickup in yield estimates also…”
The trend for corn futures is up since the second week of October. We are long corn futures and may stay long going into Monday’s report.
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.