Corn farmers have felt the pinch of low prices, and with a record corn crop coming in, that situation is unlikely to change anytime soon.
Despite all the noise, grain analyst Darin Newsom says the corn market is steady as she goes.
“You know, there’s nothing outstanding in this market. If we look at both the Dec. March future spread, if we look at the Dec. July forward curve, all telling us you know we’ve got a neutral situation, not that much different from where we were this time last year, basis is relatively weak. All of these things are to be expected as we enter September, and again, with the large harvest coming at us.”
Newsom says he will be closely watching December corn in the weeks ahead. He says it tends to rally during September and October, but he is not expecting any big moves.
Strong corn exports support prices while soybeans lag yearly pace. However, large carryover stocks limit upside despite solid yields.
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Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.
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Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
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