Will there be a different view of corn demand from USDA when Friday World Agriculture Supply and Demand Report is released? With China and Russia both purchasing Argentina corn in recent weeks, the demand picture could become even more bullish, says Jerry Gulke of the Gulke Group.
"Russia and China in one or two days bought or committed to buy through their government to government relationships with Argentina 50% of the corn they export every year. That’s a big deal. How is the USDA going to handle this?"
Gulke believes the numbers in Friday’s report could look even more bullish than originally anticipated.
Allendale Inc. released its estimates for this week’s report. It doesn’t expect USDA to account for the recent Russia and China purchases until the January 2011 report. Allendale expects corn’s worldwide ending stocks at 128.98 million metric tonnes, compared to 129.16 in November. For U.S. ending stocks Allendale anticipates carryover at 827 million bu., which is unchanged from November.