December 2010 corn futures have regained more than half of the decline that occurred from Nov. 9 to Nov. 23. Cash prices have recovered even more as basis levels continue to strengthen, said University of Illinois agricultural economist Darrel Good.
“A number of factors continue to influence corn prices, with the market trying to weigh the negative versus the positive factors. There is some concern about the large, long positions held by both index and managed funds and the possible negative impact of liquidation of some of those positions,” he said.
Such activity could have some short-term impact on price movement, but over a longer period, prices will follow fundamental value. As is often the case, there is both uncertainty about fundamental factors and conflicting fundamental factors, he added.
“One of the largest uncertainties is the fate of the ethanol blender’s tax credit. That credit is currently at 45 cents per gallon of ethanol blended into the fuel supply, but that credit is set to expire on Jan.… Continue readingRead More »