The Way Ahead
I think the price of corn continue to be downwards. I will sell a corn contract next week.
Firstly, many traders believe that the U.S. Department of Agriculture report announced next week, might raise the soybean yields, the increase rate is expected about 2 bushels per acre to 4 bushels, to suppress soybean prices down.
Secondly, an agricultural meteorologist said, good weather is expected to be in the next 1-10 days, the farmers of corn and soybean harvest will continue to maintain a rapid pace, while in this week , with a light rain, harvest progress slowed slightly.
Additionally, weak export demand signals, made many investors chose to take profits before the crop supply and demand report of Ministry of Agriculture annunciation next week in this Friday, the day’s price was suppressed temporarily. The whole tendency does not change.
The factors contributed to this week corn prices’ fell was temporary. The main factor to influence the price is information production. I believe the next week USDA report will have an big influence on corn downwards price.
In addition, the information of soybean is not as much as corn. And it is not sure that the USDA report’s influence to soybean price is negative or positive. I choose to do nothing with soybean.