Will corn rally again?

By Jon Scheve, Superior Feed Ingredients, LLC

In 8 trading sessions, the corn market has lost nearly 50 cents per bushel. May corn is now trading similar levels to right before the January USDA report was published.

After the January report, basis weakened throughout the U.S., while the March/May futures spread widened. These are common signs of an upcoming futures value correction, which is what ultimately happened.

This means anyone who went long futures, on or after the report day, and did not liquidate their positions, are likely upside down and losing money on their trades.

Can corn go back up?

Export demand has been great, so this price decrease should keep U.S. corn competitive globally until mid-summer. So far, US farmers have sold nearly 75% of their 2024 crop to end users and commercial grain companies. For that remaining 25%, I expect farmers will wait to see how weather is impacting the new crop in July.… Continue reading