Will Corn Have A Bumper Crop?
Today’s Spotlight Market
Corn traders are bracing for what could, potentially, be the largest crop on record. Corn traders are not going to find outside support from other gains, as Wheat futures have already hit near market conditions, while Soybeans have faced an onslaught of selling pressure of late. It remains to be seen which direction the US Dollar is heading. The Dollar Index has held a pivotal support level at 79.00, but its rebound has hardly been inspiring for traders.? ?
Despite plantings being behind its normal pace, ideal growing conditions have farmers and traders thinking yields could be very good. The weather across much of the growing region has been very mild with ample rains. The month of July is key to the success of the Corn crop, as this is the time when pollination takes place. If weather turns hot and dry, yields could be negatively affected. If, however, weather remains mild, there is little in the way of Corn reaching near record or record output. There had been some talk that farmers could simply hold off selling Corn until prices rise, but it remains to see if that will happen and last.
Technical Notes? -? View Today’s Chart
Turning to the chart, we see the December Corn contract breaking out of a sideways consolidation pattern on the chart to the downside. The preceding downtrend move in the market suggests technical selling may continue. Corn prices are nearing a technical bear market, which would certainly add to the bearish sentiment.?? Prices are in danger of taking out support near the 412.00 level.