I’m planning to long or short for wheat and corn next week so I’m planning to get some information about them.
Corn is widely cultivated in US and China. Corn is used to feed livestock, made ethanol and consumed as food to human. US is the largest corn producer all over the world. The price of corn went down last week because of US harvest pressure and a wave of fund long-liquidation. However, Asian buyers such as South Korea’s largest feed maker Nonghyup Feed is looking to buy 140,000 tonnes of corn. The pace of US corn harvest is likely to slowdown in the central and eastern Midwest due to light rains. Most important, due to the severe drought in US, the production of corn will decrease and the price of corn will go up. I believe the price of corn will go down, but not too much.
I believe wheat price will continue to rise next week. First, South Korea feed maker Nonghyup and feed millers in Philippines are looking to buy 70,000 tones and 60,000 tonnes of feed wheat. What’s worse, Russia is going to restrict grain exports due to the high domestic price. This will makes wheat price higher.
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Good analysis! Hope you use this analysis well in your trading strategy and make profits.