Photo: Forex Pros
The corn report for the U.S. was about as ugly as it gets.But after corn futures prices briefly hit an all-time high of $8.437 per bushel, they sunk back down to $8.200.
Was automated, program trading to blame?
“The algos jumped on the big numbers early,” Kevin Van Trump, CEO of Kansas City-based Farm Direction, told us.
But as floor traders digested the other major report from the USDA, prices started rattling around.
That data, Worldwide Supply and Demand, showed foreign corn production for 2012/13 was mostly unchanged.
China, Argentina, Brazil, Mexico, and South Africa all saw increases, though they were offset by reductions for EU-27, Ukraine, India, Serbia, Russia, Croatia, Moldova, and Canada.
Van Trump added he didn’t think the volatility would last.
“I think it’ll get ironed out,” he said.