Can Corn Break Out Of The $5.10 To $5.40 Trading Range?

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Market Commentary for 10/15/21

Corn Outlook

Corn rebounded off the lows this week, but still it remains in the tight trading range of $5.10-$5.40 it has been trading for seven weeks.  Some of this can be attributed to the recent US wheat price rally.  Also, for the first time in several months China’s domestic corn price is lower than the price levels of Chinese domestic wheat.  This could cause a demand increase for corn for feed should the price trends continue.

Corn yield reports throughout the US continue to be impressive and suggest the national yield average could still increase.  If so, this could be an anchor to prices.  On the flip side, Argentina’s spring planting is extremely dry and the potential for upcoming weather issues from November      through March could provide the corn market some upside potential.  I expect corn will remain range bound at current levels until harvest is over and more is known about the growing conditions in South America.

Soybean Outlook

US Beans are expected to have a very large harvest.  Despite prices rallying nicely off the lows earlier this week and announcements for increased exports, the pace will need to improve more for prices to rally much further.  Plus, there are concerns over Brazilian soybean values being nearly 70 cents less than US prices for late February shipments and beyond.  This could mean that beans will be range bound for the next couple of months between $12-$12.50.

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Jon Scheve
Superior Feed Ingredients, LLC
jon@superiorfeed.com