Corn futures continue to plummet for a second day to prices not seen in four years. It is still being discovered that the corn crop conditions have improved and this is adding to the expectations for corn production this year to be the biggest ever.
Earlier this week, the USDA stated as of August 31st, nearly 74% of our domestic corn were rated “good to excellent condition” – the best week for corn since 1994! Other industry analysts insist the actual corn output will exceed the USDA’s estimate.
“Everyone was expecting a bumper crop with ideal growing conditions since the crop was planted. December Corn (futures) hit its short term objective today at 343 3/4 . A close below that level should bring (corn) prices down close to the 300 level,” said Laura Taylor, a senior commodities broker at RJO Futures in Chicago, sharing her insight regarding the current corn futures situation.
The trend for corn futures is in the midst of finding new lows in its downtrend. We are short corn futures with the seasonal tendency this time of year.
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.