Corn Volumes Could Rise Before Key Data Release


Jan. 8 2016, Updated 1:04 p.m. ET

Trend for corn prices

On January 7, 2016, March corn prices were trading near the key support level of 350 cents per bushel for the third consecutive trading day. Prices successfully held above the key support level before the upcoming key data release. The volume of the contract increased by 10.1%, and open interest declined by 0.36%.

The consensus projection is that prices might continue their downward movement with the huge supply and weak demand. Key moving averages were substantially higher than the current price levels.

The above graph indicates that prices could be in the range of 345–360 cents per bushel in the short run.

Article continues below advertisement

Price drivers

Prices that were significantly lower than the consensus USDA (U.S. Department of Agriculture) Weekly Corn Export Sales adversely affected futures prices on January 7, 2016. Weather conditions in Brazil supported output sentiment and pushed corn prices down.

The US dollar depreciated by 1.0% on January 7, 2016, and supported corn prices. A low US dollar supports US goods in export markets.

Stocks review

On January 7, 2016, stocks for corn trading and producing companies fell. CHS (CHSCP) fell 0.52%, continuing its declining trend. Ingredion (INGR) fell 1.4% for the second consecutive day. After rising two consecutive days, ConAgra Foods (CAG) fell 3.4% on January 7. The PowerShares DB Agriculture ETF (DBA) fell 0.40%, continuing its two-day decline.


More From Market Realist

  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • Beyond Meat Burger 3.0
    Company & Industry Overviews
    How Is Beyond Burger 3.0 Different and Will It Bring BYND Stock Up?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.