Big Supplies Heading Into Corn Harvest

September 14, 2016 9:39AM CDT

As we are approaching the harvest for corn, supplies are big. If the Farmer Service Agency (FSA)  acreage numbers are as large as being talked about, the crop size could increase In the next report, which will be Oct 12 th . The old saying is big crops get bigger. There is no sign of frost in the major growing areas through the end of the month. The other negative, which could have some later effect on demand is China’s support for its producers of wheat, rice and corn. It’s support levels are Higher than the World Trade Organization allowed. Time will tell as to how this will end. With the negatives being said, the market should continue to weaken.

On the other side, the crop is still not in the bin. The weather, even though frost free for the next 2 weeks, needs to remain dry so that the heavy equipment can start to cut without being bogged down in mud. Also, if prices get too cheap,  the the producer will hold the product ,waiting for higher prices. Export demand has been good, but a lot more is needed to use up the big supply that is due to be harvested.

As the harvest progresses and the trade starts to get a handle on crop size, support could come into the market Selling dries up which could be the start of a short covering rally.

Corn could still break another 10-15 cents.

Corn Daily

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