Corn harvest is about 2/3 done. That is about average for this time period, which means we now have a good handle on the supply side of the equation.
The trade is now looking at the demand. The produce is holding on this supply, hoping for the demand and therefore prices to increase. Even though Gulf corn is still the world’s cheapest, there is still competition from other countries. China, for example, could now become an exporter. They are cutting back on their feed grain imports due to the large stockpiles. The corn market is going to need help from corn and/or wheat, in addition to new export business. Corn is trading in a narrow range of about 355 and 345 near term.
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.