With all the supply news in corn being negative, the corn has not been breaking. South American crops are good overall. The U.S. has big supplies. Also, concerns of trading policy change with other countries. Support seems to be coming from talk of less planting of corn and putting the acres into soybeans which is cheaper to produce.
The Chinese corn market has also been firm. They have changed some of their policies to help usage of corn. The feelings are two sided, meaning that it will reduce stocks, but add more supply to the marketplace.
There seems to be export business being done as Japan buys corn today on the 24 hour reporting system. Producers are not too anxious to see yet. The market is awaiting the USDA Supply and Demand report 2/9/17.
So far, we are still in a trading range of about 370-350.
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.