Corn Strategy - June 7, 2017
Published
6/5/2017
2015 crop: Corn futures continue to move sideways, but the action continues to indicate the trend should turn up again. Wait to price basis contracts you still have.
2016 crop: Cash basis levels are starting to show some slippage. That would increase if futures would turn up. Putting corn on a basis contract still looks like a good move. Basis will suffer if futures rally, unless strength is tied to serious production losses. Amid that, we aren’t willing to flat price inventory, either.
2017 crop: We see little reason to price new-crop unless December futures are over $4.
FUNDAMENTALS: Production talk dominated most of the discussion this past week. The absence of stress in weather forecasts seems to be keeping a lid on prices. But the trade is starting to talk about some acreage slippage with the planting problems in the southern and eastern Corn Belt. At the same time, the emerging dry pattern in the northwestern parts of the Corn Belt isn’t going unnoticed, either.
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