Corn Futures––Corn futures in the July contract settled last Friday in Chicago at 4.15 a bushel while currently trading at 4.54 up nearly $0.40 for the trading week hitting a 5 year high. If you have been following my previous blogs you understand that I am bullish the corn market and I still believe that corn will break the $5 level soon.
I think the crop estimates are way too high at this time and with such a long growing season ahead traders are now putting a price premium in case of some type of drought or early frost that could devastate the crop. The large money managed funds are now long 147,000 contracts and I’m sure they’re adding more to that position in today’s trade as more rain might enter the Midwestern part of the United States this weekend as we await Monday’s highly anticipated crop progress report.
The volatility in corn is very high and it will become even more violent in the coming weeks ahead as there is just so much uncertainty at this time as I see absolutely no reason to be short corn.
The fundamental situation is the complete opposite of soybeans which has the highest carryover in history as corns carryover dropped 800 million bushels in the last month and I think will go even lower as this market is very strong to the upside.
CHART STRUCTURE: POOR
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