26 June 05:02 AM
Futures news, corn. The Analytics Team of Commodity Trading Department notices rather unexpected scenario at corn market: on June 18 US ratings of corn condition in the USA were published, which caused immediate price rise for the new yield futures.
Market has been supported by current weather conditions, namely, dry weather and lack of moisture in corn-growing area. Thus, 63% of seeds are in good/excellent condition, versus 66% last week. Consequently, seeds are influenced by the lack of moisture. In such circumstances, corn is coming closer to the critical phase of pollination, notably 5% of seeds are in blossom, so in the nearest future plant will be vulnerable to weather conditions. This has been met by panic among market gamblers.
Taking into consideration the fact that prices for new yield of corn in 2012/13 is influenced by a number of bearish factors (USDA forecast for next season, according to which this year’s yield of corn may increase by 9.3%, which may the highest on record since 1937. This fact may influence ending stocks that are most likely to increase to 1.881 bln. bushels from 801 mln.), as well as downward seasonal trend, according to which typical decline connected with the expectation of new yield is to start from this point, corn market prices are not supposed to rise drastically.
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European stock indices have started this trading week positively and are currently trading in the green zone. Some indices keep making new 5-year highs.