Corn prices fell from their 5-week high as forecasts of drier weather have allowed producers to resume their harvests. Rains and cold temperatures interrupted the harvest over the last few weeks, but they haven't lowered the expectations for a record-setting harvest this year.
Bloomberg reported that corn for December delivery fell 1 percent to $3.535 a bushel on the Chicago Board of Trade by 5:10 a.m. Prices rose to $3.575 yesterday, marking the highest level for a most-active contract since Sept. 8 and capping a two-day gain of 6.9 percent.
"The rain is clearing out in the extended forecast and the harvest not only should, but will, accelerate. Modern machinery on the farm is really quite amazing. With a few days of good weather the next USDA report will show that the corn and the soybean harvest is right back on track," wrote economist Dennis Gartman in a newsletter.
According to Reuters, progress in the corn harvest is brisk – estimates from the USDA said the harvest was about 24 percent complete and 74 percent of the crop was in good-to-excellent condition.
"The overall picture from the USDA report is that the harvest is progressing very well and if that continues, we are only going to see lower prices," said Phin Ziebell, Agribusiness Economist at National Australia Bank to Reuters.
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.