Corn Futures Spike to 4-Month High on Brazil’s Dry Weather

Corn futures are experiencing renewed buying interest as recent dry weather in Brazil is expected to hurt corn crops there.  Corn futures have risen to their highest levels since September on these concerns..

Weather data from Southern Hemisphere experts say parts of Brazil’s biggest corn producing regions have received less than 60% of normal rainfall in the last three months.  Now corn crops are even more threatened by a new heatwave on top of the country’s driest rainy season in decades.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current corn futures situation,Continued cuts in South American production, and higher than expected exports to China for 2014 are making prices move higher.”  Moreno added,The cold weather in the Midwest is also pushing up all energy prices, including ethanol.”

Corn futures have emerged with a new UP-trend recently, making higher highs and higher lows.  I expect this corn futures uptrend to last into late Spring, or very early summer.  The uptrends for corn futures (and soybeans!) normally don’t begin until mid/late March – and we’re a little early…

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