2.
Corn Pollination
The Corn crop typically
pollinates in late June, and early July.
During the month of June corn futures have
tended to increase. However, since even a
poor pollination ensures some future corn
production the market doesn't tend to
increase as much during pollination as it
does doing planting.
During the
pollination phase it is important to watch
temperature and precipitation levels. High
temperatures and a lack of precipitation can
result in poor pollination and lower
pollination. Low temperatures and excessive
precipitation can also affect pollination
which could result in a production loss.
3. Corn Harvest
Corn is typically
harvested in October and November. Corn
futures prices have tended to decrease
during harvest. However, harvest delays, or
at least the fear of such, can cause futures
prices to increase.
During the later stages of maturation
and/or harvest, excessive heat can cause
crop damage. Prolonged exposure to moisture
can reduce quality, allow mold-based
diseases to spread, as well as delay the
harvesting effort due to the ground being to
muddy for fieldwork. Early frosts can damage
crops as well.
4.
Corn Diseases
Corn diseases can cause
harvest losses, affect the quality of the
harvested crop, and cause storage losses.
Corn diseases can increase production costs
and have negative effects on marketing and
cropping decisions. Problems with
germination and stand establishment that are
related to seed decay, damping-off, and
seedling blights are often encountered in
the field. These losses can be costly,
especially if replanting is necessary.
Diseases may cause leaf spots or leaf
blights, wilts or premature death of plants.
5.
USDA Crop Reports
The USDA publishes
several key crop reports that are helpful in
your research and trading of corn futures
and options. The first main report comes out
at the beginning of the corn growing season.
It is the USDA Prospective Plantings Report.
It is released around the end of March. It
summarizes how much and which crops the
farmers expect to plant for the upcoming
season. The USDA Monthly Crop Production
Report is released around the 10th of each
month. The report gives an updated estimate
of supply and demand for corn. The USDA
Grain Stocks Report provides information on
the current supply of corn and other grains
in the U.S. and the world.
These are just some of the basic
fundamentals to keep in mind when you are
considering a trade in the corn market.
Before opening up a commodity account to
trade corn you should consult with a
licensed commodity broker that follows the
corn market to discuss investment
strategies.
COMMODITY INVESTING IS NOT SUITABLE FOR
EVERYONE. SUBSTANTIAL RISK IS INVOLVED.
