Corn Faces A Long, Cool Summer?
As long as dollar remains weak, bulls appear in control.
Bryce Knorr
Published: Jun 8, 2009
Now the waiting game begins.
With the prevented planting deadline for corn history, most producers will start switching unplanted corn acres to soybeans. How many won't be known until at least the end of the month, one of a series of questions that likely will keep the market guessing, perhaps until harvest or beyond.
For now, prices are continuing to ratchet higher, thanks to a big influx of outside money. Speculative hedge funds in the latest week were joined by index funds, with net open interest up 82,778 contracts. That's pushing the price curve, helping to raise my price targets if the outside money stays in. Right now, it looks secure, because commodities are producing fabulous returns for investors. Of course, as we found out last year, the outside money can leave the market too. But as long as the U.S. dollar remains weak, and the global economy appears on the mend, bulls appear in control.
To read Bryce Knorr's complete weekly corn review, click HERE.
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