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RSS By: Bob Utterback, Farm Journal

Bob Utterback has more than 26 years of experience and offers producers a disciplined approach to marketing.

Corn Takes a Bounce Today

Jul 27, 2009
The corn market enjoyed a nice upward trading bias day while beans were on the defensive most of the day. We continue to recommend to clients that corn will gain on beans in the next six months. We are currently long two March corn contracts for every one bean contract. The logic behind this position is the bean acres are going to increase while the corn will decline in the March report. Additionally, I believe South American producers are going to increase bean plantings to make up for last year’s yield loss, plus alternative crops such as cotton, corn and wheat are at low prices as compared to beans.
 
The big issue that will dominate the trends in the next 60 days is the lateness of the crop and when will early frost occur. Last week as I was traveling over to the Farm Journal Corn College, a lot of corn had not pollinated yet. This means we are going to have a lot of corn pollinating around the first of August, which means to get to black layer at least 60 days will be needed for development. That means no frost anywhere before Oct. 1 and preferably Oct 15. The talk is whether or not we see a repeat of 1974.  

If you need any help in implementing a speculative or hedging strategy give us a call at 1-800-832-1488 or email me at utterback@utterbackmarketing.com or laura@utterbackmarketing.com.
BEFORE TRADING, ONE SHOULD BE AWARE THAT WITH POTENTIAL PROFITS THERE IS ALSO POTENTIAL FOR LOSSES, WHICH MAY BE VERY LARGE. YOU SHOULD READ THE “RISK DISCLOSURE STATEMENT” AND “OPTION DISCLOSURE STATEMENT” AND SHOULD UNDERSTAND THE RISKS BEFORE TRADING. COMMODITY TRADING MAY NOT BE SUITABLE FOR RECIPIENTS OF THIS PUBLICATION. THOSE ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. ALTHOUGH EVERY REASONABLE ATTEMPT HAS BEEN MADE TO ENSURE THE ACCURACY OF THE INFORMATION PROVIDED, UTTERBACK MARKETING SERVICES INC. ASSUMES NO RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS. ANY REPUBLICATION OR OTHER USE OF THIS INFORMATION AND THOUGHTS EXPRESSED HEREIN WITHOUT THE WRITTEN PERMISSION OF UTTERBACK MARKETING SERVICES INC. IS STRICTLY PROHIBITED. COPYRIGHT UTTERBACK MARKETING SERVICES INC. 2009.
 
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COMMENTS (11 Comments)

Anonymous
We have re-priced all commodities, this was last done in the late 1970's.
9:27 AM Jul 29th
 
Anonymous
Two years in a row of late crops. Tough on ethanol industry last year. Why arent we getting the same market reaction as last year. I think on a national basis corn is furthr behind schedule. Or were last years markets just a blunder? Or a heavenly godsend to producers for one time in their lifetime? Now we have fertilizer prices acting like gas prices still double from 4-5 years ago, cash rents sky high, diesel right up there, etc. Dont know if were any better off now than 4-5 years ago.
10:14 PM Jul 28th
 
 
 
 
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