Could corn demand start to pick up??
Oct 08, 2013
Corn bulls are hoping to see some confirmation to rumors that private Chinese buyers recently purchased 800,000 to 900,000 tons of US corn, thought to load out in early-2014. If confirmed this would obviously be the first spark to what would surprisingly be a bullish US "demand" headline. With the government still in limbo, weekly crop conditions and harvest updates were not available. Many analyst believe the US corn crop is now 23-26% harvested, last year closer to 70% harvested by this time. Lets also not forget most analyst also believe the US corn crop has grown to some degree on improved moisture levels. A 14.0 billion plus bushel crop is now not out of the question. On the flip side, insiders in Brazil are thinking full-season corn acreage could be 10-20% lower. The question is what will Brazilian producers do with their second crop acres? Will the elect to go ahead with corn, even though prices are well below the cost of production ($1.50 to $2.00 in many areas)?
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