The U.S. corn crop is big. Now, the Brazilian 2016/2017 corn crop is getting bigger according to CONAB. South American weather, so far, is good. With the negative supply information, the corn market hasn’t broken. This could be due to fund buying before the next USDA report. Some analysts are saying this report will cut I’s estimate of the US corn harvest. Even if this reduction is done, the world still has plenty of maize. Also, producers haven’t sold a lot as they are still waiting for higher prices.
The market will need an increase in supply side issues, such as more business, possibly weather related problems, and an increase in feed demand. Right now, corn is in a trading range. Range in March Corn is 3701-350.
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.