Chicago Board of Trade Market News
Dear Market Perspectives Readers: Please note that starting next week the U.S. Grains Council’s Market Perspectives report will be published on Thursday afternoons instead of Friday. The first Thursday edition will be published on Thursday, September 24, 2015. We appreciate your continued interest in this publication!
Outlook: The December corn contract started off the week strong but the recent upward momentum ran out of steam. Fundamental factors were not strong enough to keep the December 2015 corn contract elevated above $3.90 per bushel prior to harvest. Furthermore, current chart patterns encouraged technical traders to test corn contracts for additional price weakness during the second half of this week. In doing so, they may have created a short term buying opportunity for end users of corn.
The approach of harvest and the momentary exiting of long positions by large speculators are having somewhat of a bearish impact on prices, but the present decline will eventually slow as buying increases in the more distant corn contracts. It is even possible that this week’s lower price action is a 3 to 4 day setback within a market which still has more upside. Therefore, end users of feed grains are encouraged to actively monitor corn contracts and to be nimble in purchasing, as March corn seems destined to spend some more time above $4.00 bu. this spring. The ability to currently purchase the March 2016 corn contract well below $4.00 per bushel is assumed to be a temporary buying opportunity; there seems to be a good probability that that contract will be trading higher than its current price next spring.