Most of corn’s 2014 “upside has come from weather shocks in Brazil that is increasing the crop stress for corn, though may be more favorable for soybeans. Also, U.S. sales have increased despite the big news from China of the ban on the GMO variety of corn. According to a report by Xinhua, China has rejected 601,000 metric tons of US corn, containing the unapproved genetically modified MIR 162 substance,” said Jodie Gunzberg, vice president at S&P Dow Jones Indices, in a note published earlier this month. [Commodities in the Year of the Horse]
Parets adds “bullish divergence in momentum could be the catalyst to take prices to our target. We like the risk/reward.”
Teucrium Corn Fund
ETF Trends editorial contributed to this article.