Corn futures have once again extended their lows – now to five-year lows – after the USDA revealed this morning domestic corn inventories before the start of this year’s harvest were bigger than analysts previously forecasted. Corn futures appeared to have factored-in the additional 55M bushels after the report sending corn to prices not seen in five years.
Corn futures continue their decent with three months of favorable weather boosting the outlook for yields only two years after the worst drought in US history sent corn futures to record high prices. Now, American farmers are set to collect a record harvest in the very near future.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his insight regarding the current corn futures situation by stating, “This year’s record corn crop on top of what was left over from last year has the silos swelling. We have not seen any real uptick in demand for corn since the rest of the gain market in particular wheat has been falling at about the same rate.”
The trend for corn futures is nothing but down. I am expecting some type of relief rally soon, however, we remain short corn futures as of this writing.
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