“We’re going into pollination for corn without a lot of stress,” Bill Gentry, a marketing consultant at Risk Management Commodities, told Bloomberg. “The funds kind of came into the market hoping for a real weather spook, and it’s dissipated.”
Moreover, U.S. government data revealed growers sowed the third-largest corn crop since World War II in June, raising the prospects of a large harvest ahead.
Related: Corn ETF Looks to Breakout
“Additional price weakness followed last week’s USDA reports that showed larger-than-expected June 1 stocks of U.S. corn and a larger-than-expected estimate of planted acreage of corn,” University of Illinois agricultural economist Darrel Good told AgWeek. “June 1 corn stocks were estimated at 4.722 billion bushels, about 195 million bushels larger than the average trade guess. Trade guesses were surprisingly small, averaging about 100 million bushels less than our calculation that assumed that feed and residual use of corn during the third quarter of the marketing year was on track for the marketing-year total to reach the USDA projection of 5.25 billion bushels.”
For more information on the corn market, visit our corn category.
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