Corn futures retreated after extending yesterday’s lows to prices not seen since late September/early October on signs of speedy planting progress in the nation’s Midwest corn-belt. Corn futures have since reversed higher and are currently up .035 cents at $3.525 per bushel at the Chicago Board of Trade.
The USDA reported approximately 92% of the domestic corn crop planted as of May 24th – well ahead of the 88% five-year average. Corn emergence also spiked to 74% from 56% only the week before (well ahead of its 62% five-year average).
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his view regarding the fundamental assessment of the corn futures market by stating, “The farmers have done everything they can to get ahead of this unpredictable weather, and its really reflective in the corn (futures) prices.” Craney adds, “Should the weather continue to be favorable for growing (corn), the market may also be factoring in more supply atop ample inventory.”
The trend for corn has resumed down after trading sideways for most of the month of May. No sign of a bottom at this time, but corn futures is only a mere few cents away from its October 1st low.
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.