Corn Futures Weighing Record Acreage

The gov’t commented today they expect food and fuel prices to ease as more corn is planted domestically – the most acres committed to corn since 1944!  US farmers are expected to add more than 2% acres for corn for a total of 94M acres planted.

Of course corn inventories are expected to rise after a 16-year low last year, and this will come at a time of lower demand for ethanol.  Corn prices are expected to average $5 bucks per bushel for the farmer, which is nearly 20% less than last year “take.”

Kevin Craney, a senior commodities broker for R.J. O’Brien Futures in Chicago, stated today regarding the current corn futures news, “While today’s forecast of 94 million acres of potential corn being planted is less than consensus estimates, it did little to provide the market with any kind of direction. With old crop supplies remaining tight, (corn futures) prices will continue to be well supported.”

The trend for corn futures is technically “up,” however the corn futures market has been trading sideways much lately.  The last couple of buy signals I’ve had for corn futures produced absolutely no followthrough.  I am looking for another buy signal soon.

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