If you would like to receive our grain comments on a trial basis, go to the link below. Corn Outlook: The bulls in corn are relieved to hear that EPA will not grant any waivers to the ethanol mandate. This is not good news, however, to the ears of livestock feeders who have been[…]
Corn Outlook: The corn crop has deteriorated significantly during the past few weeks with comparisons being drawn to the drought of 1988. While there are similarities, the difference between 2012 and 1988 is that large investors consider commodities an asset class, which has lead to greater involvement by the funds creating price distortions, such[…]
Corn Outlook: Traders have been consumed with weather during the past few weeks and, rightfully so, as early-planted corn is pollinating under extreme conditions. Last week, the ratings fell 7 points to 56 percent in good-to-excellent condition, the worst seen for this time of the year since 1989. According to Ag Watch’s yield model,[…]
Corn Outlook: The corn crop is off to a good start with a rating of 72 percent in good-to-excellent condition, unchanged from last week. Weather is expected to be dry heading into the weekend but, unless Mother Nature changes her mind, a record yield may be in the making. Last week, traders feared that[…]
Corn Outlook: Macroeconomic issues are weighing on corn values even though recent dry conditions have caused the ratings to slip. Currently, 72 percent of the crop is in good-to-excellent condition, down 5 points from the previous week. Illinois and Indiana were down 13 percent and 14 percent respectively. Normally, the market would bounce from[…]
Corn Outlook: Corn futures have rebounded after shaking off USDA’s bearish report last week. While old crop stocks remain tight, end users are now looking ahead at the potential increase in supplies and early harvest this fall. Planting is progressing at blazing speed and 87 percent complete compared to 56 percent a year ago[…]
Expectations for increased production and an early harvest is pressuring new crop corn while reducing concerns of tight old crop stocks. Planting is progressing swiftly at 71 percent complete compared to 47 percent for the norm. Many of the major producing states are running 40 percent ahead of their average. The first glimpse of USDA’s[…]
Corn Outlook: A wetter pattern is forecast in Argentina this week, which will help late-planted corn. However, weather is becoming less of a factor as harvest has begun in northern Brazil. In the meantime, domestic basis levels are strong and providing underlying support. Additional support is sponsored from the rally in wheat. EU leaders[…]
Corn Outlook: Corn futures have been on a downhill roll since the crop report last week. Large traders were overly exuberant going into the report as the trend following funds bought 180 MB increasing their long position to 755 MB. Right now, those positions are under water with the funds jumping ship. Traders are[…]
Corn Outlook: Traders celebrated when they returned from the New Year holiday as the stock market surged and the grains rallied. Optimism regarding Europe led to the strength in equities. While pumping money into their financial system to resolve the debt crisis is a band-aid measure, it does not fix the problem. However, cutting[…]