Port St. Lucie, FL (PRWEB) February 16, 2011
T & K Futures and Options, Inc. believes that corn futures prices will test all time highs very soon based on supply and demand estimates. The recent USDA report showed that the United States has the lowest corn reserves in over 15 years. Increasing demand from ethanol use, a weaker U.S. dollar and increasing land and fertilizer prices are also helping to push corn prices higher in America.
China has been aggressively buying corn from the U.S. and others and ethanol production set a record high in December and January. These extremely tight supplies leave little room for bad weather or any other disruption that may harm U.S. crops. Poor crops from many of the corn producing nations around the world coupled with robust demand for corn may continue over the near future and keep upward pressure on corn futures prices for the next few months.
A weaker U.S. dollar and high corn prices are already forcing many food makers to raise prices to offset their input costs of expensive corn. Familiar names such as Kellogs, Sara Lee and McDonalds have already raised prices to consumers. Corn is fed to poultry, cattle and hogs and as many foreign economies begin to grow the protein consumption of its residents also begins to grow as people choose higher quality foods. Visit http://www.tkfutures.com/corn.htm to learn more about corn futures and options trading.
The author of this article is a 17 year veteran of the corn futures and options markets and the president of T & K Futures and Options, Inc. Futures, options and foreign exchange products carry significant risk of loss and past performance is not indicative of future results. Visit http://www.tkfutures.com/education.htm to learn more about the mechanics of the futures and options markets.