Supplies of corn are forecast to reach their highest level since 2004 when production rises to 966.6 million metric tons of corn for the 2013-14 harvesting season, according to the U.S. Department of Agriculture. The federal agency also boosted projections for shipments of corn from the U.S. this year.
"In corn, despite the good export figures for the U.S., the global balance sheet remains heavy," states a market commentary penned by farm adviser Agritel of Paris, according to the news source.
At 8:44 a.m. on Wednesday, corn futures dropped 0.4 percent, a 0.0175-cent drop to $4.3975 per bushel.
After having dropped roughly 40 percent in 2013, corn prices have climbed well more than 4 percent thus far this year. Last year was the grain's worst performance in at least 55 years.
Reuters reports China canceled the acquisition of four shipments of corn from the U.S. earlier this month amid conflicting opinions over a genetically modified strain that remains unapproved.
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.