Corn: Fundamentally, things are looking up for the corn complex. After Friday’s surprise increase in stocks, the market has been unable to move lower. Concerns are growing that demand is not being rationed at the current price for both ethanol and exports. There are rumors that commercials have a lot of inventory bought for January, but they are already allowing producers to deliver on contracts in December. This could shorten up their book and require them to become more aggressive on cash procurement as we move into the end of December. Expectations are still very high that new crop corn will have to stay competitive in order to assure adequate planted acres. It should be noted that Dec2011 corn contract hit $5.40 today, which is still 22 cents below its contract high. We believe the odds are still better than 60/40 that the market will test and perhaps make new highs before April 1, 2011.
Lame Duck Spectacle
Corn & Hog Comments – 12/16/10 Feed prices remain stubbornly strong