Corn futures will have much to take in as China’s corn stocks are reportedly ready to plateau or begin to fall in the next growing season of 2016-2017. Corn futures are down .01 cent today currently trading at $3.6125 at the Chicago Board of Trade.
The USDA’s Beijing bureau reports that after six continuous years of corn inventory increases that there is the “potential” for a forthcoming decline after a subsidy cut for farmers announced this past September. Plus, the Chinese government is enhancing sweeteners to users as a way to help eliminate its large corn inventories.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the corn futures market by stating, “The demand for corn in China is real, however, too many farmers tending to this one crop has made the government there cut subsidies which is sounding the alarm for future lower stocks.” Craney added, “The Chinese government may get more involved as I understand even after the lowered floor price, corn is still more profitable than other popular crops.”
Corn futures trend is down but may be finding a support level at these current prices. The $3.60 cent level of support for corn futures has held for a good part of this year.
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.