Farm Progress

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

Kevin Van Trump, Founder

February 8, 2018

1 Min Read
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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.

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About the Author(s)

Kevin Van Trump

Founder, Farmdirection.com

Kevin is a leading expert in Agricultural marketing and analysis, he also produces an award-winning and world-recognized daily industry Ag wire called "The Van Trump Report." With over 20 years of experience trading professionally at the CME, CBOT and KCBOT, Kevin is able to 'connect-the-dots' and simplify the complex moving parts associated with today's markets in a thought provoking yet easy to read format. With thousands of daily readers in over 40 countries, Kevin has become a sought after source for market direction, timing and macro views associated with the agricultural world. Kevin is a top featured guest on many farm radio programs and business news channels here in the United States. He also speaks internationally to hedge fund managers and industry leading agricultural executives about current market conditions and 'black swan' forecasting. Kevin is currently the acting Chairman of Farm Direction, an international organization assembled to bring the finest and most current agricultural thoughts and strategies directly to the world's top producers. The markets have dramatically changed and Kevin is trying to redefine how those in the agricultural world can better manage their risk and better understand the adversity that lies ahead. 

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