Time for Corn to Retrace?
Although commodities have been on a strong run higher since March 2020 last year all markets pullback or correct at some point. One market that is worth looking at is corn as seasonally it can be quite weak during these summer months due to seasonally dynamics.
Between June 17 and October 01 Corn has lost value a total of 10 times in the last 15 years. The largest fall was in 2008 with a huge -38.37% loss. The biggest gain was in 2012 with a 39.72% profit. The average return has been a -9.92% fall.
So, this means any strong and compelling fundamental reasons to sell corn in the coming fortnight as we come into the end of June would be backed up by some pretty strong seasonals. It is certainly one commodity to keep an eye on.
Key Trade Risks: If there is a commodity super cycle then corn prices could still keep rising.
Giles Coghlan
