Sep 18, 2014
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Current Marketing Thoughts

RSS By: Kevin Van Trump,

Kevin Van Trump has over 20 years of experience in the grain and livestock industry.

Two Bullish Points for Corn Today...

Jan 23, 2014

Increasing Feed Usage? Rising meat prices could give corn bulls a little reason for optimism, at least in the short term. With cattle and hogs at such high price levels, producers of course want to pack on as many pounds as possible, and corn is the obvious feed of choice at the moment. A little more positive demand news is that Japan booked an additional 105,664 metric tons of US corn for the 2014/15 crop year. It’s interesting to note that Japanese corn usage in animal feed has been on a steady rise - about 2% right now over last year. Granted, that’s not going to fill the giant gaping demand hole China has recently left, but it’s not bad news either. Unfortunately, for producers, depressed prices are what really increase demand. On the flip-side, increased demand is one of the main things we need to keep us from eventually spiraling into the sub-$3 range.  Click here for my daily report...

If You've Been Waiting For That 5% Bounce... MAR14 corn futures are still 5% higher than the low of $4.06 ¼ made back on Jan 10th prior to the USDA's report. Most traders seem to be thinking the US farmer is still holding close to 50% of the US corn crop on the farm. The question is, once the weather breaks will we start to see a few more bushels being sold?  I strongly suggest keeping your hedges in place and writing your cash price targets down on paper.  I think we need to be realistic in regard to what percentage of a rebound we are expecting to see.  Remember, a lot of US farmers are sitting on large quantities of corn and are ALL wanting to be sellers at higher prices. On a short-term perspective the first wave of technical resistance is thought to be around $4.35-$4.36 in the MAR14 contract with the next wave between $4.50 and $4.60.  Click here for all my grain comments...      

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