Commentary: The corn came under considerable pressure early. The selling abated as the day went on and the market closed mid range. The USDA will release a report tomorrow. There are many thoughts regarding this. It makes little sense to guess as the USDA has not done what conventional wisdom would dictate for a long time. The USDA balance sheet shows an ample amount of corn available. This is true domestically and globally. The US is not the cheapest game in town at present. All this could mean little if the Chinese start purchasing. This is the big question. It is difficult to always trade on what’s to come. There is talk that the Chinese are looking at DDG and corn offers. All talk at present. The longer term outlook remains worrisome with the amount of acres designated to the corn market. The obvious problem with this is the SA crops and certainly the Black sea with feedgrains. This competition for export business could be fierce into the crop year. The acreage shifts seem as though they still favor corn as beans have continued to weaken as well. Let’s see what the USDA report holds for corn .
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John J. Walsh
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