Tight Crop, Says USDA for Corn Futures

A major US investment bank is predicting corn futures prices to rise back up to “near” record highs.  It’s been three consecutive years now of smaller corn harvests and apparently inventories are predicted to fall to a 39-year low.

In a report just released today, the USDA said they expect global stockpiles to drop 11% by October 1st and pointed out this would be the lowest amount since 1974.  Corn usage has multiple uses such as food, energy, and livestock feed…with all these uses, it’s no wonder there is a corn shortage looming.

Today’s USDA report showed continued tightness in the corn market, as the supply figure came in under analyst’s estimates,” says Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, regarding the current corn futures situation.  Levy adds, “This year’s US drought severely reduced the corn output, on the heels of the two previous years of smaller US corn harvests.”

The technical trend for corn futures remains up despite sideways trading for the past 2-3 months, but is currently at a crossroads.  Corn futures trades have been far and few between, and this has worked out to our advantage.

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