July 2012 corn futures are currently trading about $1.00
below the peak reached in August 2011, but $1.40 above the low reached a month
ago. December 2012 futures are trading $1.50 above the low of June 15, 2012 and
within $0.15 of the high reached on August 31, 2011.
Much of the recent strength in corn prices has been
associated with very hot, dry conditions in the central and eastern Corn Belt
and indications that yield prospects have been reduced substantially in those
areas. As much of the crop in the Corn Belt has or soon will enter the
reproductive stage, the market will continue to try to determine production
prospects. In addition, the market is assessing the likely strength of demand to
determine what price is needed to balance potential supply with likely
consumption. <Read More>
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