Corn traders will be closely monitoring the options which expire today. Its anyones guess on where we close this afternoon... will the trade make a run for the $4.10 strike or will be it the $4.20's??? Cash corn remains strong, we continue to hear talk of record basis bids at the Gulf and are starting to finally hear talk of the basis popping a bit out in the Eastern Corn Belt regions. If you are still holding old crop bushels make sure you are diligently checking your basis, I am just afraid some areas could see extreme movement that is "here today gone ..."
Like I said a few days ago, the growing season in South America is very long and there can be several issues along the way. My hopes are we can get the right combination of a bullish weather headline out of South America along with a bullish pop in the basis here at home. Hopefully, the combination of the two can help us capture a couple of respectable cash sales prior to year end. I am starting to hear some whispers that isolated areas of Uruguay, Argentina and parts of Brazil have become extremely wet. Don't get me wrong, rains in South America are very common this time of year but with the corn planting behind we could see some emergent issues on the later planted corn. Some farmers are even having to re-seed certain areas and may be forced to switch more acres to soy. Producers still holding risk on old crop bushels should remain patient but be ready to reduce a little each time we see a 10-20 cent rally. Remember it's not just about "price" but rather about "profitability" and reducing longer-term risk. Live to farm another year has to be in your business model. Click here to get my daily report....
MAJOR Farm Tax Law Changes Proposed by Senate
Today's Corn..not just about price but profitability....