Corn Futures Initially Rally on Inventory Estimate Cut

Just this morning corn futures spiked to highs not seen since last summer.  The USDA reported earlier today a lower than expected 2014 corn inventory of what many analysts were predicting as domestic exports have improved.
 
Analysts surveyed from Bloomberg News expected a bit more than 1.4B bushels of corn in reserves, while the USDA reported last month an expectation of 1.456B bushels.  As of today, corn reserves are expected to be 1.331B bushels as of August 1st.

The USDA confirmed what many on the street were anticipating, as inventories of corn were trimmed. Today’s report of strong global demand is seen as validation for the recent surge in corn (futures) prices,” stated Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the current corn futures situation. 

Corn futures trend is clearly up, and had been trading higher going into today’s report.  I exited our long position and am looking for a pull-back in corn futures before initiating another long trade (preferably). 

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