Uncertainty surrounds the new U.S. corn crop

A level of uncertainty is hovering over the new corn crop in the United States, and it is making that market more unpredictable. Traders warn when it comes to price volatility, it is important to look at the whole picture, preferably in advance.

Brian Basting, an analyst with Advance Trading, says December futures are already showing signs of price volatility. He notes that last year December futures fell in June and the same happened in 2016, when futures fell $1.30 from mid-June through August.

However, surges are possible, too. In 2015, December futures rose about $0.90 between June and July due to drought. Basting says all these trends show the importance of having an effective risk management plan.