Friday, July 23, 2010

Corn Plunges 6 Percent on Bearish Outlook

Things changed quickly for corn futures this week, as concerns over hot, dry weather rapidly moved from high corn prices to plunging ones, as rains and cooler weather increased the outlook for the corn harvest, but not for corn traders.

For the week, corn dropped 6 percent, with September corn falling 5 1/4 cents to $3.71 1/4 a bushel, and December corn decreasing more, 5 3/4 cents, to $3.84 1/2 a bushel.

Some are trying to extend the corn price rally by implying the rain was too much and would have a detrimental effect on corn, but that adds too much confusion and uncertainty, as you can't have it both ways.

That isn't to say there won't be some negative effects, as corn planted in lower areas could be impacted, but overall, the outlook is far better than it was, the reason corn prices will continue to fall, even with attempts to use every different weather pattern as a way to try to push corn prices up.

No comments: