Both corn futures and wheat futures may be experiencing buying demand from their recent lows at what may be considered bargain prices from the last six months. Both grain futures began the day extending their gains from the last couple of days, but have since turned lower to close down for the day at the Chicago Board of Trade.
Corn futures fell to nearly $3.62 per bushel Tuesday which is its lowest level since early March and is down about 2% this month. Wheat futures saw a contract low of $4.6375 on Tuesday with favorable forecasts in the key wheat growing regions, and this market is on track to have dropped 5% this month.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental analysis regarding the current grain futures situation by stating, “With plenty of inventory, favorable weather, and planting well ahead of being on track, we can expect more downside action.” Craney adds, “I just can’t imagine a scenario to make these two grain markets bullish anytime soon…”
Corn futures and wheat futures are clearly down with no bottom yet in sight. Looking for a retracement higher in these grain markets before getting on-board the short side.
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.