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.
World Market Pulse submits:Commodity traders and market experts are said to be keeping a keen eye on the prices of both rice and corn as experts feel that the rising corn prices could act as a catalyst for the rice industry with a possible increase in demand for rice as animal feed in the coming weeks.
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:
ETF Database submits: Investors checking in on the Teucrium Corn Fund (CORN) yesterday may have been suspicious that another market malfunction was generating bizarre ticker readings. But Wednesday’s performance was no joke; the 8% surge came after commodity traders were shocked yesterday by a U.S. Department of Agriculture report that showed a surprisingly lower corn crop as well as sharply lower corn inventories.
By Matthew Bradbard: Energy: Higher trade failed in crude oil, as an early bid was rejected and prices settled under previous resistance. Prices need to break under their 8 day MA in the coming sessions to confirm a trade lower. That pivot point in February futures is at $92.50. RBOB bounced off its 8 day MA, but again failed to close above $2.80. A trade under $2.70 remains to be my feeling in the coming weeks.
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.
As commodity prices start rising again -- at least some -- the question of whether futures are useful indicators seems relevant. Figure 1 shows the IMF commodity price indices, as reported in the October World Economic Outlook: