What Market Fundamentals Can Affect the Corn Futures?
In 2006 the United States produced 42% of the world’s corn. The United States is not only the world’s top corn producer, but also the top exporter. Therefore when following corn prices it is important to follow the US corn crop. The corn market follows a fixed cycle of production. The corn cycle goes from planting, to pollination, to harvest. During these key stages of the crop’s development the corn futures prices are very sensitive to any potential supply disruption. 1. Corn Planting The relative price of corn to other crops, and crop rotation needs influence planting acreage allocation. Corn planting in the United States typically begins in late March and is completed by mid to late May. During March and April in the early stages of the planting effort corn futures prices have tended to increase. During the planting phase it is important to watch precipitation levels. Too much rain could result in a late planting. That could mean a loss of acreage or late development which could res
