December Corn is trading in a sideways trading band!
SOURCE: CME Past performance is not necessarily indicative of future results. Although very reasonable attempt has been made to ensure the accuracy of the information provided, Utterback Marketing Services Inc. assumes no responsibility for any errors or omissions.
December 2015 corn seems to be trading in a tight trading band between the 1/30/2015 low of $3.966 and the 12/29/2014 high at $4.216. So far this year the market is yet to see any fight for acres or bounce in the market and the Prospective Planting report is due at the end of the month. Currently with sufficient on farm supply yet to be priced, there seems little reason for the end user to bid the market higher. Add to this better weather conditions next week for wheat, the implication is it may be difficult for corn to bounce. The only reason now would be a shift in acres to corn or a spring planting event. A bounce back above $4.21 would open up the opportunity for December 2015 corn to go back to the June 23rd, 2014 high at $4.69.
We continue to believe that corn should bounce into the end of March, but if it is not seen one must begin to adjust their market plans and decide which form of marketing will be used whether the decision to sell the 2015 production by time or price.
One should take advantage of these rallies to put hedges in place if none have been made. For those of you who are just beginning or just want to refresh yourselves with marketing terms, ideas, and strategies, on Tuesdays and Thursdays we will have articles regarding terminology and marketing. If you have ideas, email me at firstname.lastname@example.org.
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