Bulls in the corn market are trying to breathe of sign of relief, after surviving what could have been a very negative January. But those betting on rising prices may soon be holding their breath again.
Corn continues to try to carve out its own path, attempting to wrest control over its destiny from the influence of outside markets on Wall Street and LaSalle Street. That could have led to disaster, with fundamentals in the market looking shaky after a bearish Jan. 12 USDA increased carryout by more than 300 million bushels. But a recent uptick in export activity due to drought in Argentina could finally begin to eat into those overhanging supplies. Now the question is whether outside markets will cooperate, too.
The jury's still out on that one. The poor January showing in the stock market suggests the economy and financials are in for more rough sledding in the U.S. and around the world that could take the corn market down as well. Money managers sitting on the sidelines have cash to pump into markets that rally, but so far they're not biting on corn. Friday's CFTC report showed total open interest in the same flat range it's held since Thanksgiving. Even the export mini-boom may not last.
To read Bryce Knorr's complete weekly corn review, click HERE.
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