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.”
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