COMMENTARY: The corn can be broken into two. The old and the new. The nearby spreads are reflecting the tight market at present. The new, while a bit friendly given the current carry, is more concerned with the potential acreage increases. The weather has not been ideal so far for corn. Recent relief has been helpful, and more rains are expected. The current crop conditions are trailing the norm. It seems to me we are in a critical one to two week period where needed rains are a must in certain areas. If they fall then trend line should be possible. If they fail to materialize then there are real concerns. The US has been in a strong position of late with the large increases of Chinese purchases. As well as the Brazilian second crop. These facts are a bit baked in the cake. They are important, but already considered. The market at present, in my opinion, needs a new reason for strength. The acreage will be watched closely. Exercise caution.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
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