I last wrote about Corn a little over a month ago,
Despite China considering a U.S. request to shift some tariffs on key agricultural goods, despite price forming lower highs and lower lows, price was respecting short and longer term up trendlines.
In a record-breaking wet spring, flooding in key farming regions has caused unprecedented delays to planting, causing lower-than-expected inventory levels. In corn, 58% of the intended planting has been done, compared with 90% at this point historically.
“Now the market’s in a situation where you’re going to have very low inventory levels, very slim plantings, and by next spring it could be a real issue,” Peter Boockvar, chief investment officer of Bleakley Advisory Group, told CNBC’s “Squawk Box ” on Wednesday.
And this is what a 15% increase in price looks like in Corn.
The chart suggests the next level to pay attention to is the weekly supply at $448. Price should pause here/pull back before moving higher.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.