The latest Supply & Demand report is out of the way and showing no surprises vs the guesses, though the yield in corn was down one bushel per acre. Even with the one bushel drop per acre, the supply side is still big. Exports were increased, but still did not cut into the carryover by very much. The yields have been variable in corn depending on location and the time of planting. Some trade talk mentioned that the yield was down due to the fact that some of the ear weights were high.
With the October Supply & Demand Report out of the way and the U.S. harvest starting to wind down, the market will start to look at South American weather. Right now South American production is being increased which will add more to the world supply side of the equation. Corn should have difficulty rallying much further from these levels.
Series 3 Licensed
Senior Market Strategist
Gerry has more than 30 years of experience as a licensed stock and commodities broker. His background includes working with Swift Henke in back-office operations; H. Hentz, where he handled the stock order desk; Drexel Burnham, where he helped set up the commodities operation in Chicago and did business with commercial and retail clients; and Smith Barney, where he served commercial and retail customers. Prior to joining RJO Futures, Gerry worked with retail and commercial hedge customers at MF Global.