As of this writing, today’s high trade for corn was 5.96 ½ and we have to wonder what would justify 6.00 corn. These levels are well supported by the ethanol crush and moderate export demand, but there is a difference between having a bullish stance and being well supported. Locally, the ethanol and rail markets are offering the strong basis and you’ll continue to see the ebb and flow of producer selling, basis backing off due to them rewarding the market and then basis tightening to draw out more bin bushels. This is all to say that the corn market is near 6.00 for old crop and near 5.50 for 2022. We do not want to be complacent in this marketing environment with the high risk involved on the inputs side of the equation. Much of the fund buying as far as inflation is concerned has already been factored into the trade, so pushing above the 6.00 mark is going to take a significantly bullish talking point.
We are neutral the grain market and welcome a sideways trade following the last 12 months of volatility, however we are positive the risk in raising next year’s crop is strong. You are welcome to visit with your ALCIVIA Grain Marketing Specialist at any point throughout the year to set up a personalized marketing plan! Give us a call!