The corn futures market got a big boost yesterday morning when the USDA released supply and demand estimates indicating lower U.S. corn ending stocks for 2010/11 and higher usage of the commodity. Ending stocks are projected 70 million bushels lower this month with higher expected food, seed, and industrial use of corn, and corn used for ethanol is projected at 50 million bushels higher.
After a 23 cent jump in March corn futures to just 2 cents shy of $7 a bushel, market analyst Jim Riley from Riley Trading in Brookston, Indiana told HAT there could be follow through strength in the corn market another one or two days.
Riley says there is one caveat though. “We might not get that because we’re in new territory by closing with higher markets on corn across the board. When you get in new territory on price charts you haven’t got anything to shoot at.”
The corn carryout number is the tightest in about 15 years. That very tight stocks situation coupled with good export and ethanol demand, and already recording those new contract highs, means a strong corn market throughout the coming weeks is quite likely.
“We are in a very tight situation,” Riley explained, and “the only thing that can make this look different is a very good early planting season and a lot more acres of corn. We definitely need at least 6 million more acres of corn. Whether we’ll get it or not, or what they’ll tell us we’re going to get is the question. But I do feel like soybeans and wheat are going to be cheated on acres.”
Soybean carryout in the February report stayed the same. Riley said some analysts were shocked by that.
Read More
http://www.hoosieragtoday.com/wire/news/00086_rileycornfeb_222953.php
After a 23 cent jump in March corn futures to just 2 cents shy of $7 a bushel, market analyst Jim Riley from Riley Trading in Brookston, Indiana told HAT there could be follow through strength in the corn market another one or two days.
Riley says there is one caveat though. “We might not get that because we’re in new territory by closing with higher markets on corn across the board. When you get in new territory on price charts you haven’t got anything to shoot at.”
The corn carryout number is the tightest in about 15 years. That very tight stocks situation coupled with good export and ethanol demand, and already recording those new contract highs, means a strong corn market throughout the coming weeks is quite likely.
“We are in a very tight situation,” Riley explained, and “the only thing that can make this look different is a very good early planting season and a lot more acres of corn. We definitely need at least 6 million more acres of corn. Whether we’ll get it or not, or what they’ll tell us we’re going to get is the question. But I do feel like soybeans and wheat are going to be cheated on acres.”
Soybean carryout in the February report stayed the same. Riley said some analysts were shocked by that.
Read More
http://www.hoosieragtoday.com/wire/news/00086_rileycornfeb_222953.php
No comments:
Post a Comment