Corn futures are trading within last month’s USDA crop production report’s price range for that particular day, but corn farmers in the Midwest are reporting crop damage due to first, soaking rains in late spring/early summer, followed by a hot and dry August. Corn futures are trading down .06 cents currently at $3.69 per bushel at the Chicago Board of Trade.
A farmer that says he grows corn in Illinois on 1,500 acres calls his progress “a mix of the good, the bad, and the ugly” with normal-sized ears, but just as many plants hit with disease and/or lack of nutrients, or just plain dying on the vine. There are reportedly similar results appearing across the Midwest because of the crazy weather, so this isn’t a micro-regional situation.
“With this development spread across the Midwest, the question must be asked if the USDA will cut it’s September corn production forecast,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the fundamental assessment of the corn futures markets. Brady added, “A cut in production estimates has the potential to stop falling corn (futures) prices into next month’s harvest.”
The trend for corn futures is down, however the $3.65 area is offering strong support since late May. Corn futures is testing this support again, but if $3.57 fails there’s no bottom in sight.
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.