Both corn futures and wheat futures extend their losses from late last week to reach two-week lows on a positive outlook for global supplies yesterday. Soybean futures were also down, but all grains have reversed course today (as of this writing) at the Chicago Board of Trade.
The USDA recently raised their outlook for domestic and global wheat supplies, and also stating global wheat inventories for next season are expected to rise nominally. July Corn has reached prices not seen since last June after the USDA said pretty much the same thing.
“These markets (corn futures & wheat futures) have been trading down and sideways for the better part of this year with this news in mind,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his view regarding the fundamental assessment of the grain futures market. Medina added, “There is absolutely no fundamental news out there to change the trend of these markets any time soon.”
The trend for our grain futures markets are down with an exception of wheat futures – they’re in what appears to be a failed up-trend. No bottom yet in corn futures, and soybean futures could be putting in a bottom, however, a clearer picture needs to unfold.
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.