Published on: 09:33AM Nov 18, 2008
We started the week off with a decent price bounce. Harvest is starting to wrap up and the bin doors are getting ready to shut hard. So the supply side of the equation is essentially set. Seasonally, one must be positive to the corn market but this is not normal times. The market continues to be keenly aware of the outside markets and it’s influence on “demand domestically and internationally.” Normally, lower values would help increase usage.Times are different right now. Everybody is worried about their income and consumer demand is drying up. I have to say that this stagnate demand could last for some time. Therefore, for now I’m a neutral to the demand bear.
Bottom line: The market is at a stalemate. Sideways rather than trending is more an expectation. The biggest risk I see for corn now is the deferred contracts trade down to the nearby contracts.
Short term bias is positive but I will be watching the March corn contract for potential catch up cash sales for end of the year selling opportunity. I would start selling the March at $4.15 and be done by $4.20 on any cash sales you want make between Dec. 15 and Jan. 5.
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