This year maturity of the US corn crop is much more advanced than normal.
Early maturity means early harvest and early harvest means that our harvest low will come earlier than normal as well.
The early maturity isn’t the only reason for the early harvest low however.
Not all traders are convinced that we will have a record yield and when we have record demand, every bushel counts.
Right now the trend in ending stocks estimates is down and could remain down into fall regardless of whether we have a record yield or not.
If we do see the yield estimate revised lower it will make the corn market that much more bullish, because there will be that much less corn available to meet our record demand and we will need even more acreage next year.
As long as the consensus is that our supplies are shrinking, prices should continue to rise.
As for the wheat, that market has stalled out and is trading sideways. In the past few weeks the wheat market has fallen to important support levels and has held.
However, rally attempts fail to gain traction and the market seems to lack fresh news that will propel it higher.
For the time being, it still looks like the wheat market has topped out.
Until there is some fresh news, or extremely good export, rallies are selling opportunities.
Schwieterman Marketing, L.L.C. specializes in risk management and cash grain and livestock marketing plans.
For information on the markets or our marketing service you can contact Bret Crotts at 888-437-9131 or bret@swbell.net.
The information contained herein is based on data obtained from recognized statistical services and other sources believed to be reliable.
However, we have not verified such information and we do not make any representations as to the accuracy or completeness. Past results are not necessarily indicative of future results.
All statements contained herein are current opinions, which are subject to change. The risk of loss in trading commodity future contracts is substantial.
You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.
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This year maturity of the US corn crop is much more advanced than normal.
Early maturity means early harvest and early harvest means that our harvest low will come earlier than normal as well.
The early maturity isn’t the only reason for the early harvest low however.
Not all traders are convinced that we will have a record yield and when we have record demand, every bushel counts.
Right now the trend in ending stocks estimates is down and could remain down into fall regardless of whether we have a record yield or not.
If we do see the yield estimate revised lower it will make the corn market that much more bullish, because there will be that much less corn available to meet our record demand and we will need even more acreage next year.
As long as the consensus is that our supplies are shrinking, prices should continue to rise.
As for the wheat, that market has stalled out and is trading sideways. In the past few weeks the wheat market has fallen to important support levels and has held.
However, rally attempts fail to gain traction and the market seems to lack fresh news that will propel it higher.
For the time being, it still looks like the wheat market has topped out.
Until there is some fresh news, or extremely good export, rallies are selling opportunities.
Schwieterman Marketing, L.L.C. specializes in risk management and cash grain and livestock marketing plans.
For information on the markets or our marketing service you can contact Bret Crotts at 888-437-9131 or bret@swbell.net.
The information contained herein is based on data obtained from recognized statistical services and other sources believed to be reliable.
However, we have not verified such information and we do not make any representations as to the accuracy or completeness. Past results are not necessarily indicative of future results.
All statements contained herein are current opinions, which are subject to change. The risk of loss in trading commodity future contracts is substantial.
You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.
