Has the weather story played out?
Jul 15, 2013
Corn bulls who have been riding the recent "weather train" may soon find themselves running out of track. For some producers the crop certainly needs a drink, and the next 2-3 weeks will prove to be mission critical for those who are in harms way. But with a "mild" forecast for most, I suspect "weather premium" will start to be carefully monitored and more heavily rationed. If the rains come like many are now forecasting, and conditions continue to improve, talk of a 14.5 to perhaps even a 15 billion bushel crop may soon start to circulate. Keep in mind with a projected 89.1 million acres "harvested," a 169 bushel average yield would puts the US corn crop over 15 billion bushels. I am NOT saying this is going to happen, but as long as traders believe there is still this type of "potential" it will be hard for new-crop prices to gain a ton of longer-term traction to the upside...
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