Japanese demand for corn is expected to slip as the Pacific Rim nation suffers from the effects its most severe earthquake, Bloomberg reports.
The biggest importer of the commodity also suffered a tsunami that followed the Friday earthquake that registered a 9.0 on the Richter Scale. The nation's agriculture minister said livestock-feed output will be somehow impacted by as much as one-fifth.
"Commodity demand in the region, including agricultural commodities, is expected to suffer," according to a Monday report by Commonwealth Bank of Australia strategist Luke Mathews.
Shortly after 1:30 p.m. on Monday, corn futures slipped 0.19 percent, a 0.0125 cent slip to $6.63 per bushel.
Japan's northern region, which endured the brunt of the natural disasters, also is likely to reduce the amount of feed it produces. The country generates about 24 million metric tons of feed, 4.8 million of which are from the northern region. Coastal-area ports and plants that generate feed were damaged.
"The Japanese quake adds to the existing bearish mood" that has persisted during the past few weeks, the report states.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.