Corn Bulls Eye next USDA Report
Dec 09, 2013
Corn continues to debate bearish talk of Chinese cancelations against more bullish talk regarding short-side liquidation and stronger exports and ethanol demand. I also have to believe the bulls are keeping a close eye on shrinking corn acres in both Argentina and Brazil. Bottom-line, I still believe there is more downside risk, but since I respect the power of "money-flow" a short-term bounce in the MAR14 corn contract to the mid-$4.50s can not be ruled out of the equation. Producers who need to make more cash-sales need to continue targeting this area.
Here are some the USDA highlights that we see coming in the next report. Exports have remained strong and could push higher. Ethanol is off its record pace of over 5 billion bushels being used but margins are high and there is talk we may be north of 5.1 billion bushels for etahnol production in 2013/2014. Feed/residual and China production could both see higher numbers for the report. To offset that to some degree may be a lower corn number for acres planted in South America. Click here for all of my market comments before the USDA report....