There were few surprises in the latest USDA report. This year’s carryout dropped slightly, but world corn supply increased. Final yield results and harvested acres will be the highlight in the January report. Until then, corn will likely hold a very tight range.
Christmas came early for unpriced corn farmers when corn finally broke through and closed above $4 on the March futures. Largely this was due to rumors from China that they plan to resolve import issues for U.S. DDG. It’s not certain that China will take U.S. corn yet, but they certainly could. That would help increase corn usage. Also, Ukraine cancelled some winter contracts due to logistical issues (but will still likely sell corn again this spring). $4.25 March futures are a possibility at this point, especially if farmers continue not to sell through December. The market certainly feels bullish futures right now.
The market is buying acres for 2015 with the current bull run.… Continue readingRead More »