It’s been one week since the USDA released its crop production report, and one analyst isn’t sure if the report was enough for corn to hit a harvest low.
Brian Basting, commodity research analyst of Advance Trading, Inc., thinks this report is the sign of a base, but it’s important to watch South America.
“We have ample supplies worldwide for corn and we have competition from South America in terms of exports, so short-term, the markets found at least a base,” said Basting
He believes the trade will switch their focus on U.S. harvest to South American planting around Thanksgiving when harvest will be dwindling and planting will be ramping up to full speed.
Naomi Blohm. Senior market advisor at Stewart-Peterson, thinks something “dramatic” will have to happen in South America to turn the corn and crude oil markets higher. She’s advising producers to consider to reown their crop in July 2018 with an option strategy.
“There’s just such a decent supply out there,” she said.
In terms of strategy, Basting told U.S. Farm Report host Tyne Morgan now is a time for producers to defend their balance sheets because corn yields are high.
“The only thing that’s supporting corn in [Advance Trading, Inc.]’s opinion, at least at this point, is probably strength in the bean market.”
Hear their full thoughts on U.S. Farm Report above.