CORN HEADS BACK TO BEAR MARKET AS U.S. RAINS SPARK REVERSAL

NEGOTIATOR'S TAKE Jul 08, 2016 No Comments
corn

NEGOTIATOR’S TAKE: Falling Corn costs mean lower prices throughout the food chain

 

07.05.16 – Back to bear market and entering bull territory

Corn futures are heading back to a bear market less than a month after entering bull territory as U.S. rains ease crop concerns and boost yield potential. November soybeans had the biggest-ever drop for the contract.  The southern third of the Midwest received extensive rains in the past four days, and northern areas are expected to get precipitation through Thursday, maintaining adequate soil moisture for crops, according to Joel Widenor, vice president at Commodity Weather Group LLC. In June, concerns over dry, hot weather had pushed soybeans to a fourth straight monthly gain and corn into a bull market.

 

“Rain this weekend provided timely relief,” Joe Camp, a risk management specialist at Bloomington, Illinois-based AgriVisor LLC, said in a telephone interview. “It is increasingly likely we will produce good crops.  Demand will need to improve on this break to stabilize prices.”

. . . . Read the rest of this ProPurchaser sourced article, HERE.

 

SOURCE: Bloomberg

ARTICLE AUTHORS: Megan Durisin & Jeff Wilson | Follow Megan on TWITTER

 

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