Corn Markets Next Bullish Story?
Jul 28, 2013
Corn bulls are talking about the fact Mexico has now purchased an estimated 1.65 million tons - almost double last year - which now puts them at the top spot for new crop importers thus far. The word is Mexico is in the midst of a "severe drought" and extreme heat has added to the problem by drying up reservoirs, some of which are only at 10% of capacity in top growing areas. It's expected that this will be the worst agricultural year in the country's history and that up to 60% of sown areas could be a total loss. Thoughts are with many US producers having very little new-crop corn booked we are going to see just how much and how long they are willing to store the bushels. It could get interesting if US producers simply harvest the corn and stay tight fisted. We might be looking at another big pop in the basis come early 2014? CLICK HERE to get my daily newsletter for all the news on what is driving the grain markets....Thank You