The USDA reports corn production should rise nearly 5% with this current record corn crop adding to the low stockpiles. This is the sixth year for record corn production in the US and should accommodate cattle ranchers for the global high demand for beef.
With corn harvest’s happening in more places around the world besides the America’s, corn prices are expected to fall back down to the lower-to-mid $4.00 per bushel range in 2012. With record high corn prices in the past two years, more farmers have been planting more corn than ever to accommodate both feed and fuel demands.
“South American weather developments continue to support the corn (futures) market. With a lack of rainfall and dryness in key growing regions of South America along with improving U.S. economic data, corn (futures) should continue to rally in the short-term,” said Kevin Craney, a senior commodities broker at RJO Futures in Chicago regarding the current corn futures situation.
The trend for corn futures is now up as of today. I am looking to buy long corn futures tomorrow with a rather tight stop in the market.