Corn futures have extended their losses for five straight sessions on the outlook of beneficial weather will boost our domestic crops. The US is the biggest producer of corn in the world, and this biggest slump in corn futures prices since November is not helping our farmers.
A prominent weather forecaster predicts favorable warm, dry weather this coming week will aid corn seeding in the central northerly growing region from North Dakota to Ohio. As of this past weekend, the USDA claims corn plantings to be 73% completed – 8% more than last year at this time.
“The (USDA) Crop Progress report showed a jump in corn plantings to bring it into line with the same time last year. With dry and warm temperatures expected from now until Monday, the next report may see a jump over the five year average,” saidLaura Taylor, a senior commodities broker at RJO Futures in Chicago, regarding the current corn futures situation.
Corn futures trend is now down on the daily charts. I am patiently awaiting some sort of temporary spike, or sideways action, in prices to go short corn futures. With the USDA’s forecast of this years corn harvest rising to a record, I don’t want to miss any more downward action than I have to, but I want to feel good about my risk.
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.