Recent price strength in the corn market has seen prices push to the highest level since August of last year. What makes the move really impressive is that it’s coming at a time when the 2017-18 marketing year is expected to end with 2.2 billion bushels of corn in the bin. Garrett Toay, First Choice Commodities, told Chip Flory on today’s AgriTalk After the Bell (ATB) that price strength now is tied to developing dry conditions in Brazil.
“We really have three crops to watch in a year, and the development of those three crops come at different time,” said Toay. “We’ve already seen the Argentine crop lose about 8 million tons from year-ago. Now April was dry in some key areas for the Brazilian Safrinha corn crop, so we could already be looking at two out of the three crops coming in short of expectations. Throw on top of that the acreage situation here in the U-S, and that’s adding some support. I’m not super bullish corn, but there’s still some room longer-term when you start to look at the projections for corn stocks at the end of the 2018-19 marketing year.”
USDA will deliver the first official look at the 2018-19 corn balance sheet on Thursday, April 10.