It's not how you start...but rather how you finish!
May 01, 2013
Corn bull's, staring down the barrel of the slowest planting pace ever on record, they seem to be already discounting 1.0 to 2.0 billion bushels of US corn production on the reduction of yields and fewer corn acres going in the ground. I have heard many estimates floating around the past few days, and the consensus is we are definitely going to producer fewer bushels than the 14.63 billion projected by the USDA in the February Ag Forum. I am currently hearing estimates ranging from 12.5 to 14.2 billion bushels as being more realistic. Before you get overly bulled up just keep in mind it is still "EARLY." Keep in mind these are all wild guesses at this juncture, as the "June Moisture" and "July Heat" will be the key ingredients in the overall recipe for total US corn production. Remember, we have had some very big crops that went into the ground late. The forecast for next week and beyond will remain the key to the equation. If it stays wet and cool look for the trade to become even more nervous and add more premium, a warmer drier outlook and the premium gets sucked out even quicker then it was added.
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