Since the USDA released its latest reports this week, the corn trade has been choppy, but relatively range bound over the last several months.
Don Roose, founder of U.S. Commodities, says 2017 seems to be a repeat of the 2016 corn market, when lows were put in Aug. 31.
“We’ve got a situation where we’ve got a big ending stocks figure,” he said. “Last year we had a big crop and big demand. This year, we have a smaller crop and smaller demand.”
From a producer standpoint, Roose said there’s big carries in the market. He advises farmers
to lock in some of those carries and use different strategies.
“That will give us artificial support underneath the market because a producer doesn’t want to sell at these price levels,” he said.
Hear his full thoughts boosting exports with China and Mexico on AgDay above.