Corn producers who are still holding old-crop bushels are starting to run out of time and seem to be getting a bit more nervous. Yesterday's USDA report was somewhat uneventful, but with the Chinese backpedaling more in regards to U.S. imports, a late inning rally in old-crop is certainly starting to feel much less likely. Personally, I've been sold-out for months, but I know many producers who are still holding old-crop supplies and are willing to take the gamble.
It worked well for those who held their soybeans, as I sold-out just above $13.70, and some of those who elected to hold out were able to get over $15.00. I am just not so sure the same type of outcome will hold true in the corn market. I'm pulling for you...but it just feels like the corn market is ready to turn the page and focus on new-crop potential.
Unfortunately for the bulls, there is not a lot of exciting news in the new-crop headlines either. Keep in mind the USDA is now saying the "corp condition" ratings the past few weeks (to start 2014) are some of the best they have seen in several years for the 18-major producing states. Moral of the storY: There continues to be more talk of a potential record U.S. corn crop in excess of 14.0 billion bushels. In light of the big potential the USDA has lowered their projected 14/15 estimated price range for US corn to between $3.85 and $4.55 per bushel.