Slack Demand, More Planting a Drag for Corn Futures

Not even one-year after drought conditions spiked global grain prices, corn futures have met similar fates of that of soybeans and wheat in what appears to be new-found bear markets.  With once high prices for agricultural crops, demand is slowing at a time when farmers are preparing to boost corn production this year.

Since last Thursday, when the USDA released their crop production report, corn futures have plummeted 13% on news global inventories “were bigger than analysts forecasted” and farmers will be planting the most acres since the days of the Great Depression.            

The corn crop report  from last week continues to weigh on the market.  Weather looks warmer next 10 -15 days and they should be in the fields soon planting corn,” said Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current corn futures situation.  Moreno adds, ” In my opinion, I think we are going lower in corn (futures).”

Corn futures new low’s is indicative of a bear market, but I feel the market needs to retrace upwards in the very near future.  I will be looking for lower-risk positions in corn futures as a clearer picture unfolds.

Share

Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report
 

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
 
*First Name:
*Last Name:
*E-mail:
*Day Phone with
Area Code:

Categories

Follow Us on Twitter