USDA reported that:
Corn Production Down 2 Percent from August ForecastYield forecasts are lower than last month across the northern and eastern Corn Belt and the Ohio and Tennessee Valleys where
the lack of rainfall during August reduced soil moisture supplies and
stressed the crop. Yield prospects also decreased across much of the middle
Mississippi Valley and adjacent areas of the Great Plains as dry weather
during August eliminated soil moisture surpluses.
Post Hurricane Ike, crude oil dropped to 98 dollars on Sunday's futures trading.
The global slowdown is putting more pressure on Oil price.
Hence, putting more pressure onto the demand of Ethanol in the foreseeable future.
The Beef and Chicken market has been under pressure too from lack of exports.
So I don't see how far Corn can rally unless some speculators cook
up another story to make Corn futures rally.
Lets keep an eye on Corn futures and potash stocks like POT, CMP.
Comments are always welcomed!
blog comments powered by Disqus