Corn Falls from Record, Should Investors Remain Bullish?
Corn dropped today, falling for the second session. The decline may be just a correction after the impressive rally to the record high. The prices were rising from the end of May and a small correction should be expected. Perhaps, even not that small, considering how huge the rally was.
The south European region, which contributes about 16 percent of global exports, is suffering from heat. The US government report showed that the area from Italy to Ukraine has experienced temperatures as high as 35 degrees Celsius (95 degrees Fahrenheit) or even more this month. That is 5 degrees above the norm for this time of year. Temperatures above 32 degrees are dangerous to corn during the current period of growth.
The general market mood was not positive for commodities today and most raw materials were down. It looks like agricultural commodities currently pay more attention to weather than to other factors, though, and weather makes experts bullish on grains.
Corn was down from $16.9950 to $16.4625 per bushel as of 19:46 GMT today on CBoT. The price has reached the record high of $17.7775 on July 20.
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