Oct 1, 2014
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Current Marketing Thoughts

RSS By: Kevin Van Trump, AgWeb.com

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

Corn Bulls to Remain Patient....

Apr 17, 2014

Corn demand remains strong as weekly ethanol production shows a jump of almost 13% when compared to last year at this time.  In fact last weeks production of 939,000 barrels per day is closing in on the all-time record of 963,000 set back in the last week of 2011, when plants were trying to get the final bit of government incentives. The problem is many sources inside the trade, including myself, believe the USDA currently has planted corn acreage too low.  As long as the controversy and calculations of the "missing acres" from last year continues, I suspect the trade will feel like more acres could be added to the equation at any time. Throw in what appears to be a nice window of opportunity for increased planting and you can see why corn is struggling to keep pace. Until we get a more significant "weather" story to go along with a few of the other potential bullish cards in our hand I see no reason to raise our bets. I remain comfortable with around 50% of our estimated production priced.  I am targeting the $5.25 area vs. DEC14 for another small round of sales.  My hunch is this horse just isn't ready to run as of yet...be patient and wait for the Jun/July weather headlines.      CLICK HERE for my daily report....

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