Snow in the Midwest!
Apr 06, 2009
It is cold out there today. Snow appears to be in many areas of the Midwest. Field work is essentially at a stand still. Frankly, I’m a little surprised that corn was not a little stronger today. Maybe the fear of delayed planting is still a little too early and the preparation for this week’s supply and demand report is a little more important. Because of the stocks adjustment last month, we should see a little reduction in the corn carryover this month. I would not be surprised to see trading the report for a day or so and then revert back to weather as the prime driver of the market.
Right now my bias continues to be that corn acres will exceed 85 million acres planted before we are done. I have to suggest the market should be under it’s greatest upside risk in the next three weeks with the last week of April and the first week of May being the best time for a spring-weather-scare-high. I’ve been saying for weeks that $4.52 should stop this market, but I have to accept the reality that, if plantings are delayed into the last week of April to the first week of May, December corn could move up to the major overhead resistance level of $4.75. Remember, as long as the corn is in the bag for most of the central Midwest corn production region, the market has upside potential.
ALERT: I also want to make sure all producers are watching the 2010 corn. It’s above $4.50 and, if the market does spike up over the next three weeks, there is potential for $4.75 to $5. I encourage producers to selective sell futures at that time.
If we can help you with your 2009 or 2010 hedging program [using cash and futures], please give us a call at 1-800-832-1488.
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