Home / Markets / Markets Analysis / Corn market / Corn to Fall in the Next 30 Days?

Corn to Fall in the Next 30 Days?

04/11/2014 @ 9:34am

On April 9, the USDA released its monthly Supply and Demand reportThere was a friendly surprise for corn, and the initial reaction was higher pricesHowever, by day's end, prices ended on a sluggish note with futures losing five to seven centsHistory suggests that prices have a tendency to work lower over the next thirty daysWhy?
As spring fieldwork heats up, concerns about late planting diminishThis is reflected in lower pricesJust as important, the market seems to take a step back after the Quarterly Stocks and Acreage report, as well as the April USDA Supply and Demand reportIn a few short weeks, the unknowns of these reports become KnownFor the next month, there isn't a whole lot of new news from the government that's going to provide directionIf fieldwork progresses without delays, end users and traders either exit or hold off chasing higher pricesAs planting in the South moves northward, actual results begin to surface on weekly progress reports.
In recent years, there has been little correlation between planting progress and final production resultsMany producers will tell you that last year their better corn was probably their later planted cornA number of things had to occur for this to take placeIn the end, it would suggest that, due to the ability of farmers to plant so rapidly, concerns about late planting have less and less validity compared to ten or twenty years agoBear in mind, last year about 40% of the corn crop was planted in one weekIn the end, early weather uncertainties suggested there was little reason for the market to put price premium into cornWithout friendly news, or at least perceptive concerns, prices will drift lowerCorn producers should be prepared to sell in late winter or early spring.
If you have questions or comments, or would like help implementing strategy for the year ahead, please contact Bryan Doherty at 1-800-TOP-FARM ext129.
Futures trading is not for everyoneThe risk of loss in trading is substantialTherefore, carefully consider whether such trading is suitable for you in light of your financial conditionPast performance is not necessarily indicative of future results.
Futures and options trading involve significant risk of loss and may not be suitable for everyoneTherefore, carefully consider
whether such trading is suitable for you in light of your financial conditionHypothetical performance results have many inherent
limitationsNo representation is being made that any account will or is likely to achieve profits or losses similar to those shownNo
representation is being made that scenario planning, strategy or discipline will guarantee success or profitsThe data contained
herein is believed to be drawn from reliable sources but cannot be guaranteedReproduction of this information without prior
written permission is prohibitedThis material has been prepared by a sales or trading employee or agent of Stewart-Peterson and
is, or is in the nature of, a solicitation

CancelPost Comment

Doherty: Corn Market Bottom Coming By: 09/12/2014 @ 10:49am Big crops get bigger - or at least that's the saying. There is no doubt that 2014 will be one…

Cashing In On A Bullish Cattle Market &… By: 09/05/2014 @ 9:38am The first week of September has proven to be a bearish week for grain prices and a bullish one for…

Selling Corn Puts By: 08/29/2014 @ 1:58pm As corn prices decline into fall, it may seem there is little opportunity. Yet, if you sold corn…

This container should display a .swf file. If not, you may need to upgrade your Flash player.
Soil Health at Farm Science Review