With July in the rearview mirror and harvest quickly approaching, producers across the country continue to hold out in hopes of a market rally that may not come. In July, Cody Forde, grain originator at River Valley Cooperative, says many producers holding out for a market rally fell short.
“Over the last month, we’ve seen minimal opportunity to price new and old corn. We had some small run-ups, some pops, where we saw the funds start short covering- I think these funds are going to have a hard time taking their foot off the gas,” says Forde. “When it comes to the short side of the market, it has been extremely profitable. If we go back to the May time frame, we saw December corn futures approaching the $5 mark but never broke it. I know a lot of producers wanted to get that $5 mark, but if they sold anything between that $4.90 and $4.80 it looks really good today, especially with her corn trading right around $3.99”
According to reports, over a third of U.S. corn is in storage which could create a problem for the upcoming harvest.
