Weekly Market Comments: 6/2/10
Over the past four weeks we have been painting a picture of corn supply adequacy with broad strokes. We took the view that the market would respond to our supply wisdom by trading below the 2010 low level of $3.55 (July futures). Even in the face of $3.75 futures, aided by the export business to China we discussed 2 weeks ago, we were unperturbed. Last week however, we acquiesced in the face of predicted seasonal weather concerns and only whispered about lower prices. Then we watched as prices in 2 sessions dropped 20¢ and closed below $3.55.
The weather is turning out to be more than adequate for crop development and outside markets and fund selling debunked inflation concerns. We will hold off on making new predictions until the USDA's S/D Report is published June 10th. |
