Posted on 11 September 2011.
Investors who make their returns trading corn futures have been holding their breath the last few years. A series of health concerns involving some of corn’s most popular products, such as high-fructose corn syrup, have sent the industry reeling, and prices fluctuating. In recent months, however, the market has begun to show signs of stability. While prices are still low, however, they are expected to rise soon. This is good news for the investors who have been holding onto their stock and is great news for anyone who is interested in trading corn futures. Like all futures markets, the price of corn futures depends on a prediction of how much corn will cost in the future. Following a rocky few years, futures prices are remarkably low, making this the perfect opportunity for investors hoping to get a foot in at the ground floor.
In spite of the bad press corn has recently received, the biggest factor that sets corn prices has always been the growing climate. When trading corn futures, it is important to remember that corn is a plant as well as a commodity, and is susceptible to poor weather, bad soil conditions or unexpected disasters such as earthquakes or hurricanes. One way to ensure that you make a good investment decision is to keep track of corn growing conditions around the world. The internet has made it much easier for investors to follow local farmers’ reports in the biggest corn-producing countries. If you can find out which areas are most likely to have the best crops, and where each company sources their corn from, you will take a lot of the guesswork out of investing. The better you know the industry, the easier trading corn futures will be.
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