Corn futures started the month off on a high note after the March 31st planting intentions report but quickly ran into farmer selling and managed money short sellers to push it back down to the 3.65/bu support level. For the rest of the month futures attempted to mount rallies but ran out of momentum between 3.75 and 3.80/bu. The USDA released updated supply and demand estimates for the US and World production and carry-out estimates, all of which came in on target with corn still projected at a carry-out of 2.32 billion bushels for this crop year. New crop 2017 estimates have not yet been updated at this point, but the market has now anxiously begun monitoring planting progress in the US as that season gets going. Usually during between now and the July long weekend we see multiple rallies and sell-offs as the market tries to position itself correctly based on planting progress and crop condition.
With farmers hitting the field to get field work done and seeds in the ground, marketing tends to take a back seat. If you find yourself in this situation year after year and you feel like you miss selling opportunities because you’re concentrating on the task at hand, give our market reps. a call and set target price orders to sell 5,000bu increments at target price levels set by yourself. Let the market work for you while you work to supply the market!
From an old crop perspective there is lots of export demand for old crop corn that is taking up to 8ppm vomitoxin corn. The great thing about this market is the price is essentially the same as ethanol plants and feed mills, if you can even find a bid for those destinations. If you find yourself wondering what you should do with your high vom corn, give us a call and we’ll get it moved for you!