Corn futures have bounced back over .20c from their recent lows, but the outlook for the grain remains uncertain with other factors involved. Corn futures are currently at $3.85 per bushel (as of this writing) at the Chicago Board of Trade, up .015 cents from yesterday’s close.
For the time being, the US Dollar is providing meager support being down just more than one-half percent – a lower dollar provides more buying leverage for importers. However, despite this recent “relief rally” in the corn market, corn remains vulnerable due to dwindling support of ethanol-based fuel, and with ample supplies we could even see further drops in gasoline prices as well.
“It seems not only are corn futures influenced by weather, but politically influenced as well,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, shared his fundamental analysis insight regarding the current corn futures situation. Riordan added, “The ethanol mandate has the ability to send corn futures lower as well as the strong dollar we are seeing.”
Corn futures trend is down with no clear bottom yet in sight. I am looking for a way into the short side of this market soon – hopefully my patience with corn futures will pay-off.
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.