This is a sample entry from John Payne’s newsletter, This Week in Grain, published on Tuesday, June 17, 2014.
Corn prices are approaching January lows. I want everyone to keep their eyes on two contracts. I think these are the keys going forward.
1)September ‘14 Corn
Does Sep corn fall through its lows and test the front month low of just over 4.00? The low I am speaking of came while March 14 was the front month contract. Or do we see the Sep do what May and July did, by rallying itself over the December price.
September 14 Corn
Front month corn, continuous weekly – July as the front Month
December ‘15 Corn
This corn contract represents the value of NEXT YEAR’s crop. With all of these markets approaching double bottoms, Dec 15 needs to hold if the bulls hope for a long term low to be set within these ranges. I am a believer that this contract bounces, especially if we get bullish acreage data. Do the math on what the carryout will be next year if yields are trend and we only get an 85 million acreage number. Sorry to say, but as of right now many would be planting corn at a loss at these prices. I do not see anywhere close to the amount of acres going into the ground right now with the “red” prices where they are.
DAILY AFTERNOON GRAIN WRAP
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