The USDA has also rated three-quarters of the US corn crop as “good” or “excellent,” the best outlook for this period of the year since 1999. Moreover, looking abroad, China, the world’s second largest corn producer, has also projected a record crop year while Brazil and Ukraine also expect large crops. [Summer Rains Wash Away Corn ETF’s]
Should the aforementioned technical scenario reverse, “traders will be looking for a ‘V’ to the upside to complete and Adam and Eve bottom. The contrarian play would be to get long now against a stop at new lows and play for a rise to the 520 level. From there if the Adam and Eve bottom does play out three could be quite a bit of upside. Lots of room to be a hero,” according to Harmon.
Teucrium Corn Fund
ETF Trends editorial team contributed to this post.