Corn Futures Higher on Heatwave Damage

For a third consecutive year, corn supplies from the American Mid-West are being dwindled by heat-wave damage, but this year is different.  Although domestic corn is experiencing the biggest harvest, current corn supplies are said to be declining at a rate similar to the 1996 because of the extreme heat.

Current corn stockpiles reported earlier this month are said to be 47% LESS than reported only three months earlier (according to an average of estimates amongst 22 analysts).  This estimate, however, is expected to be updated in two days.

It is early yet, but all projections are pointing to a real disaster in the corn (and other grain markets) with most of the country reporting drought conditions in the fields and no real measurable rain in sight,” said Chris Hildebrand, vice-president of trading at HighGround Trading Group in Chicago regarding the current corn futures situation.  Hildebrand added, “For now, buy dips in the grains and if you are hedging, you should be locking in a small portion of your overall grain prices at these levels.”

Corn futures had been trading sideways to down for most of the year, but recently broke out above the March high this week.  Not much I can do except await some type of corn futures pull-back in order to get on-board in a low-risk scenario.

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