December Corn declined to reach new lows amid recent news of over-abundance of stock and the commencement of US harvests. Despite this decline however farmers are reluctant to sell below $3.50, the level at which they earn an acceptable return for their product.
Although we remain short this market, we expect to see a bounce in this market as supply continues to dry-up at these low price levels. Given the degree to which this market has sold-off, a bounce may occur with even the slightest hint of positive news. If this occurs we will consider taking profits and riding the Long bounce.