Corn futures are poised, one week before the end of the year, to see lower prices for a third year in a row – as of today, down 8% year-to-date. Corn futures ended the day down .01 cent settling near $3.645 per bushel at The Chicago Board of Trade (“CBT”).
Corn futures have actually outperformed other major grain contracts at the CBT – soybeans are down 13%, and wheat the worst performer down 20% so far for the year. Weaker grain prices have a negative impact on farmer’s motivation to maximize their full yield potential, so at some time – by default – we’ll have to see strong support hold these markets.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental view of the corn futures market by stating, “The outlook in the foreseeable future doesn’t bode well for the grain markets because of high inventories and decent production.” Plotkin adds, “Now should there be a reduction in production, then all bets are off as this would cause potential in upward price action.”
The trend for corn futures is down with possible bottoming action in place right now. Corn futures are trading right at support levels held at four previous times since August.
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.
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