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Blohm still bullish on corn

Despite a sideways trend through much of the spring, a grain market analyst remains confident corn futures will experience a strong summer rally.

Speaking to Brownfield in early April, Naomi Blohm with Stewart-Peterson said analytics pointed to a high probability of new crop corn contracts reaching $4.50 sometime in June.

Moving into Memorial Day weekend, she says traders will have to face reality sooner than later.

“When you have a crop in Illinois, right in the heart of the best soil in the country, that is not getting planted in a timely manner.  And they’re having to bring in seed from Minnesota that’s like a 90-day variety seed, there is a scramble to get this crop in the ground.”

As planting delays continue, Blohm says the odds of trend-line or better corn yields diminishes.

“Absolutely I’m still in the camp of a futures market rally for the new crop.  The old crop is still going to maybe be stuck in the mud a little bit in terms of the cash markets and basis because there is a lot of corn that needs to get sold on these rallies.  However, I do feel the futures have the ability to work higher yet.”

Blohm suggests weather patterns the first six months of this year are similar to 1993, saying it took the corn market until late June to gain strength as a result of widespread flooding.

By the end of that July, she says futures had rallied more than 50 cents.

 

 

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