Are the wheels fell from the corn market?

1. It witnessed overnight until early on Wednesday morning that the sound wheels were falling from the corn market, as the December 2025 number decreased to a new contract.

2. From a structural point of view, the expanded sales process indicates that the commercial side is increasing comfort with the expected supplies with regard to expected demand (not on the basis of the US Department of Agriculture).

3. From a long -term investment point of view, positions have not changed much.

During one of my trip on the last roads, I seized the classic “Lucille” station for Kenny Rogers. This is one of those songs when the satirical simulation was better than the original version, changing one version of the main lines, “I have chosen a great time to leave me, a loose wheel.” What made me think this Wednesday before dawn? Two things: First, the news continues to remind us that the nail is loose, or that the nuts run, in both cases, usually leads to a wheel (or more). Secondly, looking at the corn market specifically, the wheels have literally left and left something other than the red missile cart that slip under the hill. I will talk more about this for a moment. A look at the quotation screen today shows the US dollar index (USDX), which received some sale on Tuesday, adding up to 0.34 on Wednesday morning. It is interesting to hear the continuous/argument about what the next step should be by the American Federal Open Market Committee. Despite all the childish name calling for Washington, DC, the ATM forward at Fed Fount continues to show that we should not expect any step until September, with a possible rise in the picture.

Now, the corn market. Allow me to start by saying that King Corn made a weak crowd at an early date of the night session, as the December version calmly added up to 1.5 cents. But then, as mentioned in the open, the wheels fell. After smoking his head to a height of $ 4.3050, the DEC25 (ZCz25) decreased to the lowest level in $ 4.21, a decrease of 8.0 cents from the closure of Tuesday. All this is good and good, and it should be expected to be dependent on the number of corn, but as the late Paul Harvey says, here is the rest of the story: Remember when you talked about the decrease in the decrease of the DEC25 at $ 4.28. This is now over, with the next goal, a round number of $ 4.20, then $ 4.10, and the large round number of $ 4.00. What happened? The corn is the weather derivative, and perhaps the main weather derivative market in the grain sector, and the weather factors have gathered in an equation that leads to more expected supplies. It is really simple. If the market price decreases, in this case futures contracts in December, this means that the width curve turns out, the ECON 101 method of saying the expected supplies is increasing with regard to the expected demand. Once again, it is not based on the fictional numbers of the US Department of Agriculture.