December corn barreled past the $3.50 mark last week, leaving analysts with one question: Is this the start of a bull market?
Kevin Duling of KD Investors and Mark Gold of Top Third both agree that both corn and wheat have put in harvest lows. But will the rally have any real staying power?
“Start looking abroad, start looking at the Chinese situation,” suggests Duling. “They've got half the world's wheat, half the world's corn. If you take them out of the equation, things are tighter on a world scale than people think. So, don't rush in and sell $3.60 corn.”
Meantime, Gold believes this is the beginning a short covering.
“If we get opportunities – $3.80, $3.90 in corn, $10, $10.25 in the beans – I think you need to take advantage of it,” he says.
Watch Markets Now on U.S. Farm Report: