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5/15/08 Corn futures prices sold
off from all time highs this week based on drier and
hotter weather predictions for the coming week. This
should allow farmers to catch up with their corn
plantings. Corn option premiums are high.
5/9/08 Corn futures prices hit a
new all time high this week based on planting delays
and lower global supplies. Only 27% of the corn crop
is planted versus the 5 year average of 59%. The
USDA estimates for 2008-09 US ending stocks is 763
million bushels down from 1.383 billion from 2007-08
estimate. The estimates for the world ending stocks
were 99 million tons down from 110 million in
2007-08. Corn option premiums are high.
5/1/08 Corn futures prices have
been gaining strength based on planting delays
because of cold and wet weather in the corn belt.
Corn is only 10% planted compared to the 5 year
average of 35% for this time of year. There is a
direct correlation to late corn planting and lower
yields. Corn option premiums are still high.
4/25/08 Corn futures prices are
falling based on improved planting prospects because
of less rain than forecasts predicted in the grain
belt. Canada estimates that its corn plantings will
be down 13% this year and overall planting progress
in the US is well below average for this time of
year. Corn option premiums are high.
4/18/08 Corn futures prices are
still hovering near all time highs based on planting
delays in the corn belt because of wet weather. Also
pushing prices higher has been the very active
commodity fund buying spree this week. Only 2% of
the corn crop has been planted versus 7% being the 5
year average for this time of year. Corn option
premiums are high.
4/11/08 Corn futures prices hit
all time highs again this week and then sold off
after some profit taking. The USDA lowered its
estimate of US ending stocks by 155 million bushels
and the wet weather in the corn belt is hindering
planting. Corn has to be planted by May 15 or
farmers have to plant something else. Corn option
premiums are high.
4/4/08 Corn futures prices hit
all time highs this week based upon fund buying.
Funds bought because the USDA report showed corn
acreage down by 8% from a year ago. Other corn news
involved the strike in Argentina ending and the corn
stocks up 13 % from a year ago. Very wet weather in
parts of the corn belt are delaying planting and may
for farmers to switch to beans or something else.
Corn option premiums are high.
3/28/08 Corn futures prices were
trading sideways within a huge price range for most
of the week and traders are positioning for the
March 31 USDA prospective plantings report. There
was major flooding in the Southern corn belt this
week. The report is expected to show more soybean
acres at the expense of corn acres. Corn option
premiums are high.
3/21/08 Corn futures prices kept
falling this week as Wall Street hedge funds and
commodity funds liquidated futures positions to
cover margin calls in stocks and to pay back
borrowed money. The Bear Stearns issue took the
confidence from investors. The Fed's 75 basis point
cut surprised investors because a full 100 basis
point cut was expected. Corn option premiums are
high.
3/14/08 Corn futures prices
rallied this week as the USDA reported ending stocks
unchanged in the US at 1.438 billion bushels. Many
farmers are expecting to plant soybeans instead of
corn because of the higher profit margins and
consumption is expected to use up current supplies
before year end. The new low for the US Dollar is
making US corn cheap to foreign buyers and the
Federal Reserve Bank is expected to cut interest
rates again by 50 to 75 basis points. Corn option
premiums are high.
3/7/08 Corn futures prices sold
off with the rest of the commodities this week after
making a contract high. The USDA report coming out
on 3/11 is expected to show a move by farmers into
soybeans and wheat at the expense of corn acres.
Corn option premiums are high.
2/29/08 Corn futures prices
rallied in sympathy of soybeans and wheat. The USDA
expects corn use to outstrip production by 200
million bushels in 2008-9. Using corn to make
ethanol is expected to continue because of
government mandate in spite of its inefficiencies as
a fuel. Increased pig and poultry consumption in
Asia is expected to help demand for corn as a feed
product. Corn option premiums are high.
2/22/08 Corn futures prices are
still near all time highs based on the idea that
China is not going to be a large corn exporter this
year because of internal demand. The USDA planting
estimate came out this week and shows a 4% drop in
planted acres of 90 million because of more
profitable soybean and wheat prices for farmers.
Corn option premiums are high.
2/15/08 The USDA came out with
its long term projected 2008-9 corn production
estimate stating the corn production would be down
4%. Globally speaking, many producers are not having
good crops and the battle for acres with soybeans
and wheat is another wild card. Corn option premiums
are high.
2/8/08 Corn futures prices
rallied this week in spite of the higher dollar.
Corn stocks are the lowest levels in decades and
ethanol and feed demand continue to grown in spite
of high prices. The USDA report today showed an
increase in global and US stocks. February is
typically a soft month for grain futures prices.
Corn futures prices at $5 may not hold this month.
Corn option premiums are high.
2/1/08 Corn futures prices
rallied this week aided by high demand. The USDA
report showed a global reduction in corn to 101
million tons which is called to pressure corn
futures prices higher. The weakening dollar, low
global stockpiles and a higher future demand outlook
may bring corn futures prices up. Demand for ethanol
is using up record amounts of corn supplies which
hypothetically should push corn futures prices
higher over the long term. March corn futures prices
are trading around $5 per bushel.
-T & K Futures and Options Inc. |
