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A winning combination for higher corn prices

ThinkStock corn market
An increase in global demand and widespread weather story will have an impact.

Corn bulls continue to talk about the crop in Argentina struggling on lack of soil moisture and above normal temps. As I forecast a couple of months back, bulls are also now starting to talk about stronger-than-anticipated U.S. corn export demand, especially in light of crop complications in Argentina and political maneuvering by China to halt U.S. sorghum imports.

As I've mentioned several times the past couple of months, I believe global demand for corn is picking up momentum and the funds are a bit less bearish about commodities as an overall asset class worth putting money to work. If we can get a more widespread weather story to go along with strong demand headlines and increased fund interest we could have a winning combination for higher prices. The best of all worlds during the next three months would be to see the U.S. dollar weaken, Argentina stay dry, Brazil's second-crop corn disappoint and U.S. spring weather create enough in headlines to cause uncertainty about total U.S. planted acres.

Yes, there are several stars that still need to align, but I remain optimistic, believing we could still see higher prices in the next 30 to 60 days.

The Van Trump Report

TAGS: Corn
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