Corn Outlook: The bulls were silenced when USDA left 2011-12 ending stocks of corn unchanged from March at 801 MB. Traders expected a reduction of 70-80 MB because of the decline in the grain stocks report last month. However, supplies remain tight as world stocks fell 1.4 percent with stocks-to-usage in the lower third[…]
Corn Outlook: Concerns about tight supplies and optimism of increasing demand from China are underpinning corn futures. Meanwhile, export inspections were nothing to write home about at 30.9 MB and below the average needed to reach USDA’s projection of 1.7 MB. Since December, shipments have been slipping and must rise 7.5 percent in order[…]
Corn Outlook: Corn futures have been under siege ahead of the inventory and planting intentions report late this week. Traders expect acreage to be 94.7 million, up from 91.9 million in 2011. If realized, it will be the largest corn crop planted since 1944. However, the chances are that with the early spring, acres[…]
Corn Outlook: Corn futures backed off this week amid profit taking and concerns that China’s economy is slowing. Possibly, they will have a rougher landing than many envision. Rising energy costs also contributed to the decline. Meanwhile, warmer temperatures and early spring weather is promoting ideas of increased plantings. We will get a handle[…]
Corn Outlook: Old crop corn is underpinned from tight stocks and optimism that China will boost imports. Meanwhile, forecasts for increased acreage and a bigger supply overhangs new crop. Informa Economics in their latest estimate projects acres planted this spring at 95.5 million. If realized, ending stocks next fall could top 1.8 BB. USDA[…]
Corn Outlook: Corn futures face crosscurrents from tight old crop stocks, uncertainty surrounding the Greek bond swap, slower growth in China, and expectations for increased U.S. plantings. Since January, the bulls have held the upper hand building a long position. Last week, the trend following funds bought 170 MB of corn increasing their longs[…]
Corn Outlook: There are two tales in corn each having opposing fundamentals. Tight stocks and a strong cash market are supportive of old crop. However, new crop is a different story, as expectations are that 94 million acres will be planted this spring. If a trend line yield is realized, we could be staring[…]
Corn Outlook: Production cuts to South America’s corn crop appear to be factored into prices with traders now focusing on an increase in planted acres this spring. At the outlook conference on Thursday, the USDA reaffirmed its November baseline projection for corn planting in 2012 at 94 million acres. However, prospective plantings based upon[…]
Corn Outlook: The bullish enthusiasm for corn has cooled, as weather in South America is becoming less of a factor. In addition, traders are concerned about reduced ethanol demand and more wheat finding its way into feed rations. Looking ahead, attention is beginning to focus on planting intentions for 2012 and the potential increase[…]
Corn Outlook: The upside momentum has waned in corn futures as the market has apparently reached a level of equilibrium that factors in production losses in South America. Currently, Argentina’s production is forecast at 22.0 million tons, down 4.0 million from January. Brazil’s crop is pegged at 61.0 million, unchanged from last month. Meanwhile,[…]