Both corn futures and wheat futures have extended their gains from Monday’s & Tuesday’s sharp rallies on the outlook of crop conditions in the Midwest. Corn futures are making new highs currently trading at $3.8425 per bushel, and wheat futures are near their highs at $5.3325 per bushel at the Chicago Board of Trade.
The pace of the winter-wheat harvest has traders concerned because, according to the USDA, only 19% of the crop was harvested as of Sunday – 31% is the five-year average for this time of year. With corn, the USDA has down-graded its crop-rating to 71% (from 73% a week earlier) with a good to excellent condition.
“I understand the torrential rains the Midwest has been experiencing may be impacting these grains,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his view regarding the fundamental assessment of the corn & wheat futures markets. Plotkin added, “Traders should have all eyes on the June 30th USDA Planting & Stocks report for the grains next direction.”
Corn & wheat futures trend is technically down at this time, but more “sideways” for at least the past two months. The corn futures & wheat markets must be traded with caution until a clearer trend picture unfolds.
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.