Corn At A Seven Year High With More Room To Move Higher
Corn is a highly seasonal commodity with most of the trading action happening in during the summer months. The period between planting and harvesting is one of the most volatile months for corn futures as the Smart Money and Hedgers move price based on expected supply and demand factors. Other factors affecting the supply and demand equation are the strength of the U.S. dollar, government regulation, emerging market and the weather.
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Corn prices have hit a seven-year high thanks to high demand from China and weather-related production problems in South America.
Chicago futures contracts for the staple crop hit the highest level since 2013, with analysts predicting the US will cut its estimates of domestic supply as Beijing continues a buying spree.
China has been ordering corn in vast quantities, as its pig herds recover more quickly than expected from the African Swine Fever epidemic.
Now when I look at the monthly chart of corn, price can move 20% higher to the monthly supply at $660.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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Corn always puzzles me. I actually live in a town where they have the Cornfest every Summer. It is just one of those small town festivals so people can get together and drink. A couple towns over we have the potato fest and there is another one that has a pickle festival. Anyway. Sometimes I feel like the farmers plant corn just to plant something. I am sure it all has to do with subsidies, but they never harvest the stuff. They just plant it, let it grow, and then cut it all down way after prime season. Maybe they are using it for feed. Who knows.
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Corn is in freakin everything! High calorie and high energy it's a crop that most likely will explode in value as the population creases. Variations of this crop in hybrids continue to come up.
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