1-30 IAN Corn Down

 Grains are on the defensive in the commodities markets.       According to analysts, grains are not looking any stronger, in fact they have actually extended their downtrend over the last 3 sessions. It is reported that a lot of that has to do with the investment side of the market moving money out of grains. I talked with Darin Newsom, senior analyst for DTN in an attempt to learn more. “ What would cause people not to invest in grains? There is an ever increasing population, fewer farmers, so you would think that grains would be like gold. The biggest thing is from what we have seen over the last number of years going back to 2005 is the demand market in corn, the demand market that was built on the back of the renewable fuels standards pulled everything  else higher. We have seen corn and other grains go to new highs, the weather problems that we have seen across the globe over the last few years for any different commodity has helped spark this idea of a short supply situation on top of this demand market. The problem is, when we look at corn and this demand market that was developed we are starting to see some cracks. 2012 and 2013 is the 1st time that the global demand for corn actually went down. Domestically, we are seeing our demand continue to be cut because for 3 years in a row we have had weather problems that have cut into production.