The corn market continues to hold its own, having not quite a rally but at least avoiding further erosion. Giving the prospect for everything that could go wrong, not bad may be good enough.
While unable to break out to the upside, the corn market appears to be trying to put the worst of its bearishness in the rear-view mirror. A major drought in Argentina may send some more exports here, a shift that might have started with Thursday's export sales, which reached a marketing year high. I don't expect an explosion in new business — there too much feed wheat around for competition. But buyers who want corn are finding it competitively priced.
Basis even picked up in the eastern processor market. Those holding old crop unpriced or hedged should be staying very close to buyers, looking for an opportunity to lock up basis or wrap up HTAs. Plenty of old crop corn remains in the countryside, and much of that corn will start coming to town in coming weeks. Average or a little basis may be plenty good enough in the current environment. With so much uncertainty around producers should continue to use an abundance of caution.
To read Bryce Knorr's complete weekly corn review, click HERE.
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