Trend for corn prices
Corn futures prices for March delivery were trading below the crucial support level of 350 cents per bushel on January 4, 2016. A downward price movement in corn futures prices since December 15, 2015, is a threat to corn producers. Prices are at the seven-month lows, leaving key moving averages substantially higher.
The chart above indicates that prices might remain in the bracket of 345 and 365 cents per bushel in the near term.
Lower-than-projected corn export inspections from the US Department of Agriculture’s report, slower demand indications from the monthly Grain Crushing and Co-Product Production, and favorable weather conditions in the critical corn export region of South America kept corn prices under pressure on January 4, 2016. Prices received a boost from the appreciation of the US dollar on the day by 0.14%.
The decline in corn prices hurts corn-producing and trading companies. On January 4, 2016, Archer-Daniels-Midland (ADM) and Bunge (BG) dropped by 2.3% and 2.1%, continuing their downward price movement for the third consecutive day. Tyson Foods (TSN) fell by 0.69% on the day, with a total fall of 1.74% during the past three days. Ingredion (INGR) fell by 3.2% on January 4, registering a total drop of 5.4%. The PowerShares DB Agriculture Fund (DBA) fell by 0.97% on January 4, 2016, after three consecutive days of price increases by 1.1%.