Corn futures are down for the second trading session in a row following the Int’l Grain Council’s speculation that global corn output will exceed another forecast from November. The improved prospects for more corn output is due to South American production which raises the corn estimate for an eight time now.
The London-based group claims that larger corn crops around the globe will put inventories at the end of this current season to levels not seen in 30 years. The group made this claim when they realized corn farmers will reap nearly 10M tons more than previously forecasted.
“Despite the solid rise in consumption, corn futures are reacting to global competition and more than enough supply,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his fundamental analysis insight regarding the current corn futures situation. Medina adds, “To know all these factors, plus the US Dollar at high levels not seen since 2009 (a high-dollar is bearish for US exports) still lead to 30-year high stockpiles is very bearish for corn futures.”
Corn futures trend is technically “up” in my study and research. This can all change for corn futures if they were to take out $3.75 per bushel this week. We’re about a dime higher as of this writing.
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.
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