Corn futures have paused after it’s biggest relief rally in seven weeks on the outlook the USDA will increase its forecast for this year’s domestic harvest. The U.S. is the world’s biggest producer and exporter of corn.
The USDA will release its updated estimates on Friday and analysts are already estimating output to be revised upward (albeit slightly). There is a twist to this story, however, that explains this current rally…my source explains to me there is much reported rain in the ground preventing extracting corn for harvest.
“Oct 10th provides yet another look at the USDA Supply/Demand report at this critical time in the U.S grain harvest,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his insight regarding the current corn futures situation. Medina added, “Producers are anxious to get the harvest completed but are being met with too much rain in many parts of the country.”
Gold futures trend is still technically down. I view this relief rally as a temporary event and am looking for short signals.
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