Commentary: The sideways grind in corn continues. The near term outlook offers some hope for a rally. The farmer has little incentive to sell at these levels. The Chinese should follow through on some purchases. The obvious hope is that corn is in the mix. This could be the near term boost the corn needs. I say could because the market has waited some time with nothing released as to how much corn or corn products are considered. The long term outlook needs to be considered with the acreage estimates coming out with sincere increases. If realized, the Corn carry could swell to 2.5 bil bu next year. This would be a more difficult situation as the whole feedgrain production globally could expand. The other long term consideration is the US dollar strength. This could be a head wind for exports, as we have witnessed so far this marketing year. The problem today is much of what we know is baked into the cake. The market needs a shot in the arm of something fresh to move from the sideways grind.
John J. Walsh
President, Walsh Trading, Inc.
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