Raise in Corn acres? Are you serious?
Jun 28, 2013
Corn tested major technical support at the $5.11 area Friday. As suspected, the USDA was apprehensive in making any major cuts to corn acreage and the bulls are noticeably disappointed. "Resurvey" of some sort is obviously around the next corner as Iowa corn acreage is ONLY reduced by 200,000 acres, Minnesota only reduced by 300,000. Keep in mind the net fund "long position" is now the smallest it has been since 2010. IF there were to be some type of bullish "weather" story pop up they certainly have enough fire power sitting on the sidelines to cause a massive splash! The problem right now is the forecast into early-July looks to be very good for many key US growing regions. I suspect Monday's "crop condition" report will show another uptick and more downward pressure will be applied. As stated the past several weeks, continue to keep hedges in place. I am afraid we are still nowhere close to seeing the bottom of the barrel. Once the $5.00 level is breached the bears will quickly try and make the push towards the $4.50 level. For a FREE 45 day trial to my report CLICK HERE .