South American Production Weakens Corn Futures

I would just like to make an observation today about corn futures.  We have been watching corn futures trade sideways for just a little more than a month now at a time when US domestic corn has been devastated by Mid-Western drought.  How can this be?

Brazil’s government is reporting corn output rising to almost 73M tons for their fiscal year ending last month.  That is almost 27% more corn than this time last year.

In my opinion, corn futures are indicating things might be as bad as the media make it seem, and we may even see corn futures roll-over to a down-trend in the not-so-distant future.  I am treading lightly in corn futures until corn can prove to me its directional intention.


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