It’s raining in Chicago today, and traders at the CBOT are behaving like it’s raining everywhere that corn is growing.From a high of well over $6.50/bushel on Wednesday, corn prices have moderated to around $6.30/bushel today.
A quick look at the weather map still shows no rain and temperatures well into the 90s throughout the corn-growing middle of the country. At least some commodities traders believe that the effect of the weather on corn prices has been mostly factored in by now, and no big surprises remain.
Commodities traders are looking at soybeans as the potential big money-maker of the year though. The South American harvest was poor, US stockpiles are low, and demand for exports is likely to rise.
The Teucrium Corn ETF (NYSEMKT: CORN) is up more than 18% since a recent low on June 15th of $35.47. The fund trades at $42.26 currently in a 52-week range of $35.23-$50.69.
The very lightly traded Teucrium Soybean ETF (NYSEMKT: SOYB) is up just 6% in June, roughly equal to the rise in the commodity price from around $4/bushel to $4.22/bushel.