Corn Futures Complete .60c Slide

It seems not-so-long-ago the price of corn futures were at record highs – about $8.50 per bushel.  That was last August, and since then corn futures have plummeted $1.60/bu lower with .60c of it since the beginning of this month!

Recently the USDA had announced domestic corn production is expected to surge 35% during the 2013-2014 growing season.  In S America, weather is expected to support crop growth and even here in the central & southern plains the predicted rain is helping drive corn futures prices lower.

Kevin Craney, a senior commodities broker for RJO Futures in Chicago, had this to say regarding the current corn futures situation, “Fundamentally, the supply of corn is still quite low. Cash basis remains high, and farmers are sitting on their remaining supplies waiting for higher prices while (corn) futures prices on the board continue to slide.”  Craney adds, “Further price rationing will need to occur in the coming weeks.”

The trend for corn futures have transformed from a promising uptrend, to an all out down-trend with no sign of “topping” activity.  In order for me to get short corn futures, we need to have a significant pull-back in prices, or a low-risk opportunity come our way.

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