Corn futures retreated from yesterday’s highs today as good weather conditions help farmers harvest a corn crop that is said to be the biggest ever. Corn futures only finished the day a mere .02½c lower, but still just above its $3.35c multi-year lows.
The Maryland based “Commodity Weather Group” claims there are “no major harvest issues” for corn including any freeze threat through the first week of next month. The USDA also said last week this year’s harvest will yield almost 3.5% more bushels than last year. Corn futures have responded by dropping a little more than 19% so far this year.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his insight regarding the current corn futures situation, “Weather and yield prospects continue to favor the bears as harvest is underway. Questions about Chinese demand for U.S. corn continue to hang over the market.” Craney adds, “However, (corn futures) traders are more focused on the prospect for higher than expected yields during harvest.”
Corn futures trend is down with no “bottom formation” yet in sight. I am patiently awaiting some type of bounce in corn futures to reset a short position with lower-risk.
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.