Corn Futures Rally on Perceived Slow Planting

Deferred corn futures contracts have reportedly risen to their highest prices in over three weeks.  This is occurring just before the USDA releases a report today regarding how wet weather may be slowing corn plantings in parts of the Midwest.

There are reports of flooding and delayed corn planting in parts of Illinois, Iowa, Missouri, and South Dakota after as much as 6″ of rain has poured these last three days.  Corn fields from Michigan to Missouri are further expected to receive an additional 3″ of precipitation late this week, further delaying corn plantings.    

Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current corn futures situation, “…excessive rains in the Midwest weather has become a major factor in the corn (futures) market.  There is now a growing concern that significant acreage loss could be the result of the wet weather patterns.”

Corn futures technical trend is currently down in my study.  It appears, however, bottoming action and a transfer of sellers to buyers may be taking place.  I am favoring the long side of corn futures.

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