World Market Pulse submits:An increased demand from emerging markets and a smaller-than-anticipated U.S. harvest helped the corn market closed firmer on the strength in wheat and on dollar weakness. Trade expectations for USDA to lower the US corn yield in the November crop production report have also acted as a catalyst for the surge in Corn futures and corn related investment options across the trading spectrum.
Matthew Bradbard submits: The indices trading higher should mean the dollar and Treasuries down and most commodities up. That is how we have positioned clients as you can read below. Oil is thru $76 trading near a one month high. The momentum is up but if you are not already long we would not suggest fresh entries at these levels.
Corn prices immediately collapsed last night as soon as trading opened, following a bearish USDA report Thursday saying stocks were higher than anticipated. This morning, the freefall is continuing. May prices were down as much as 5.58 percent. Here's the chart:
Corn prices have declined by over 25% over the last three months, hitting an all-time low since 2010. Teucrium Corn Fund (CORN), a fund that allows investors direct exposure to corn futures contracts, declined by 26% to $26.04, over the last three months. The decline in corn prices is attributed to expected excess supply, as the perfect weather in Midwest indicates a second consecutive bumper harvest for farmers across the region.
With the grilling season around the corner, US beef prices, which are at a 27-year high, are pressuring restaurants and consumers alike. The US Department of Agriculture (USDA) reported that USDA choice-grade beef hit a retail price of a record $5.28 per pound in February, up from $4.91 at the same time last year. Just six years ago, the same grade of beef cost $3.97. The country’s total cattle population, which reached as high as 132 million heads in 1975, has now plunged to 87.7 million, just shy of the record low of 82.1 million posted in 1951.
By Matthew Bradbard: Living in Miami it's sometimes hard to avoid the sweet smell of roasted corn. We have the Latin American community to thank for Arepas, a delicious snack made of melted cheese sandwiched between two corn patties, all sizzled to perfection on a street-side griddle.Of course, Miami's Arepa purveyors don't worry much about corn prices. But as traders, we do. I see a bullish trade on the horizon, let's take a look…
By Bill Luby: Since the launch of the Teucrium Commodity Trust Corn Fund ETF (CORN) in June 2010, investors who were unwilling to open up a futures account have been able to take long and short positions on corn via the CORN ETF, which holds a basket of corn futures.