AgriTalk After The Bell: Logistical Issues a Challenge for Corn

March 23, 2018 03:39 PM
 
 

Clark Neighbors of BIS Commodities in Cedar Rapids, Iowa, told AgriTalk After the Bell host Chip Flory, “We’ve got great export loading potential for corn in the weeks ahead, but we’ve got to be able to get the corn in position.” He explained outstanding and unshipped corn export sales are at an unusually high level of about 925 million bushels right now. That holds great potential, but only if the needs can be met. The carry in the cash market at river terminals is reflecting those increased loading needs with summer-month delivery trading 25 to 30 cents above the spot market. “Growers with access to those river terminals should be taking advantage of that carry to at least ‘get comfortable’ with old-crop cash sales,” says Neighbors.

Echoing a conversation from Thursday’s AgriTalk ATB, Neighbors also said to keep a close eye on March 1 corn stocks in the March 29 Quarterly Grain Stocks Report from USDA. He points to increased numbers of cattle on feed and more hog on feed than some have plugged into feed usage estimates. Neighbors says that could result in March 1 corn stocks below trade expectations, potentially providing support for corn prices as we head into April.

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