Bulls Hope Acreage Report will Turn Corn Tide
Futures just hanging on, and the bears may rule.
Bryce Knorr
Published: Jun 29, 2009
Bulls in the corn market are a pretty dispirited bunch right now. Futures gapped lower on the open last Monday and spent the rest of the week hanging on, July futures held the $3.80 level into options expiration, with December closing above $4, but any sign of bearishness from Tuesday USDA reports could push futures over another brink.
Of course, while the July Fourth period has the reputation of seeing highs, it can also mark lows, especially in years when the crop is delayed. The market is getting oversold, and arguments can made for rally potential in the long term. But without weather, bullish reports, or a complete, quick capitulation, it's hard to see why corn should rally.
USDA's acreage estimate likely will frame the debate. Traders on average expect farmers planted 1 million fewer acres this spring due to wet conditions. Some see corn gaining grown, while Farm Futures sees acreage dropping sharply.
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Tagged: usda, farm, farm futures
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