Market watching during pollination

Staff Writer
Geneseo Republic

Market volatility has picked up in the last month due to June 30 acreage surprises and the increased variability in crop conditions and we now are in the critical pollination period for corn!

Let’s start with the acreage report. USDA comes in with corn acres at 87.8 million acres, down from the March report and way down from the average trade guess of 89.3 million. As a result, corn has rallied over $.50, giving back all the losses that occurred before the acreage report.

As of today (July 9), USDA has updated supply and demand and they left yield unchanged but due to the drop in acres, domestic carryout is projected at 1.37 billion bushels and world carryout is at 141 MMT.

Will we get a chance to market some December corn at better than the Spring insurance floor of $3.99 before harvest? So far $3.98 has been the high.

The weather over the next couple weeks will have a major impact on prices. Hot and dry and the market could fly.

For the rest of this column, see the July 16 Galva News.