Friday, January 27, 2012

Weekly Outlook - Corn Price Swings to Continue

Since early October, corn prices have bounced in a wide trading range.  March 2012 futures have traded between about $5.75 and $6.75 while December 2012 futures have been between about $5.35 and $6.20.

The wide price fluctuations have reflected numerous changes in indications of underlying supply and demand for corn.  Those changing factors included USDA production and stocks reports, South American weather, the rate of exports and export sales, the rate of ethanol production, and expectations about the potential size of the 2012 U.S. crop.  Prices have also likely been influenced by the volatility in the financial, currency, and metals markets.  Currently, March 2012 futures are near the middle of the four-month trading range, while December 2012 futures are in the low end of the recent range. <Read More>

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