Corn supply is still big, but does not want to work lower. Export business is still brisk – today 120,000mt of U.S. corn was sold to unknown. Talk of changes in biofuel regulations have supported corn, but so far it is only talk.
On the negative side of the picture, concerns about bird flu. If the virus spreads in the U.S., demand for feed
will be cut back due to the loss of poultry.
South American harvest is going along well with supply getting bigger. The problem in South America is getting the big supply to the ports in a timely fashion for export. Between weather issues and strikes, movement can
become uncertain. The situation can keep U.S. exports going.
Soon planting will start in the U.S. and we have to assume it will be done in a timely fashion indicating another good crop. It still feels as if the path of least resistance is down.