Corn has dropped over 200 dollars a tonne in futures markets since August. The argument taking place now is whether we are correcting a hot market or just starting the slippery bear slide. A number of different factors come into play with either argument. One argument states that supplies are still tight and demand is still strong for the most part. The other consideration is that the global economic uncertainty is hanging a major black cloud over the demand estimates.
The reasoning behind a lot of the market moves may have a lot to do with psychology. The negative atmosphere with regard to the global economic situation is responsible for a portion of that movement. Is that movement warranted? Are we due for a prolonged rally anytime soon? Is there still time for a Santa Claus rally?
I spoke with Moe Agostino, Market Analyst with Farms.com about just what’s going on in the corn market as we move into 2012. I asked Moe whether he believe the corn market is going to continue to move lower or jump closer to the late summer highs.
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