Posted by: usset001 | September 4, 2009

Life-of-contract lows in December corn futures?

cornrawWith the way the market feels, setting new L-O-C lows is not a question of if but when. The last time I visited this question in mid-July, December corn futures were trading in the area of $3.35-3.40 per bushel. This morning the market is trading below the $3.10 mark, and the L-O-C mark of $3.025 looks too close for comfort. Keep in mind that the previous L-O-C low was established three years ago, very early in the trading of the Dec’09 contract. This is the same contract that topped out above $7 per bushel in June of last year.

I note that a few analysts are talking about the possibility of an LDP – cash prices trading below the loan rate. I can’t get that bearish!


Responses

  1. spring wheat LDP’s where only 6 cents away from an LDP in central SD this a.m.


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