(VIANEWS) – Corn (ZC) has been up by 5.07% for the last 10 sessions. At 22:50 EST on Tuesday, 6 December, Corn (ZC) is $636.50.
Why is Corn Future Going Down?
Whether you are an investor, trader or producer, you need to understand how the corn futures market works. Corn futures are exchange-traded contracts traded on the Chicago Board of Trade. They are used as a benchmark for the price of corn. These contracts are regulated by the CFTC. They are the preferred investment choice for many corn producers.
The price of corn is driven by supply and demand. The United States is the world’s largest corn producer and exporter. During harvest time, demand for corn spikes, leading to a boom in supply. However, droughts in the western U.S. and the Midwest can lead to huge price increases.
Corn futures are also affected by weather. The price of corn typically hits lows around harvest time.
Another factor that contributes to the price of corn is high transportation costs. These costs have caused inflation in the economy. This means that corn producers need to keep their prices high, because input costs will increase.
The ethanol industry is also one of the main users of corn. With high crude oil prices, the demand for ethanol is increasing. In fact, 40% of the corn produced in the US is consumed in the ethanol industry.
Corn is a staple ingredient in many foods, including beer and whiskey production. It is also used in pharmaceutical products. Nonfood uses include alcohol for ethanol fuel and adhesives for paper products.
The largest corn producing states include Illinois, Iowa and Nebraska. New crop sales in the US are second-highest in history.
Today’s last reported volume for Corn is 3996, 96.24% below its average volume of 106456.77.
Corn’s last week, last month’s, and last quarter’s current intraday variation average was a negative 0.67%, a positive 0.07%, and a positive 0.89%, respectively.
Corn’s highest amplitude of average volatility was 0.71% (last week), 0.60% (last month), and 0.89% (last quarter), respectively.
Commodity Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, Corn’s commodity is considered to be overbought (>=80).
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