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Corn markets looking for news

A market analyst says the corn futures markets is looking for a reason to push above $4.50.

Naomi Blohm, senior market advisor at Total Farm Marketing, tells Brownfield…

“If it doesn’t, it doesn’t mean we’re going to crash and burn, but it could mean we see a simple 10 cent pullback and prices then continue to trade in a sideways pattern,” she says, “until we get a little bit more news out of the safrinha crop in Brazil, till we get a better idea of our planting pace here, and how summer weather patterns are starting to look.”

Blohm says outside influences, like the Federal Reserve’s June 12^th meeting, could also spur the markets.

“Will they or will they not be doing anything with interest rates?”  She says, “That, of course, affects the value of the dollar. We’re going to be wanting to see if we see an uptick in our U.S. exports, and we’re going to be keeping an eye on the global economy’s energy demand, of course, that ties in with biofuels.”

She says another year of a projected 2-billion-bushel corn carryout likely pushes prices lower later this year, so producers should be on the lookout for opportunities to lock in higher prices.