Current Marketing Thoughts
By: Kevin Van Trump
Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
USDA to Raise Corn Exports?
Feb 25, 2014
Corn continues to take a couple of steps back from Friday's high. There is talk circulating that Ukraine corn is getting more competitive to US exports and that Argentina is also gaining some additional market share. This is causing several inside the trade to think US exports might soon start to run into a little competition. I would simply call it a blip on the radar screen and nothing to get overly fearful about. In fact my hunch is the USDA ultimately ends up having to raise the US export estimate beyond the current 1.6 billion bushels. The problem is we are still more than likely looking at a 2 billion bushel plus carryout, assuming US producers harvest an average yield north of 163 bushels per acre. Until this number is more heavily questioned (which wont be for some time) it just doesn't feel like we have what is needed to post any real significant gains. Producer who need to make catchup sales in new-crop should do so. Producers who are comfortable with current hedges and sales should remain patient. Those holding old-crop bushels need to be paying attention to the basis. I am concerned that once the winter weather breaks and transportation frees back up offers might start to ease. CLICK HERE for my daily report....