There is much to consider here. The Chinese have followed through on their purchases. The govt released numbers will start to roll this week. It is important to look at global demand as one pie. If the US picks up demand then someone else will loose it. There is no new demand floating around the globe. The amount is contracting to boot. This presents a dillema. What will the US acreage be. How much does this matter. At what point is alot, alot or to much ? It is my thought we are way past that point. The Brazilian line up for feb looks to be a record. This will or could pressure export prices. If the Argentinian crop is infact larger, further exportable supplies. The main point is my theories for the last months may be coming to fruition. As always quantify your risk. Only guarantees in life are death and taxes.
The Corn is awaiting a look at some Chinese demand. The Chinese internal prices are much higher than the US. This could be helpful to the export market. In addition, if the USDA shows a yield reduction, the US balance sheet could get a bit friendly. I believe we can still witness a 20-30 cent rally here. Not much else to add. This is a important week.
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