Cornfields on either side of the Atlantic Ocean are being baked, further endangering the crop and its production, according to Bloomberg.
Southern Europe, which supplies 16 percent of world exports of the agricultural commodity, is enduring heat waves, compounding the drought that the Midwest of the U.S. is coping with. The agricultural commodity has pushed to record highs as a result of the parched conditions of crops in the U.S.
"Everyone is looking to the U.S., but clearly in Europe we'll need to import a lot of wheat and corn," market analysis head Cedric Weber with farmer sales advisor Offre et Demande Agricole of France told the news source. "That's just adding to the problems we've got everywhere."
At 7:39 a.m. on Tuesday, corn futures fell 1.15 percent, a 0.09 cent loss to $7.765 per bushel.
Reuters reports some new corn contracts have gained 50 percent since the beginning of last month. Corn futures contracts for delivery later this year achieved record highs last week as the Midwest drought has persisted and endured.
Risk Disclosure
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.
