Corn market held steady last week as prices are expected to go slightly up

2017/9/26 20:36:51

Corn prices are expected to go up as corn harvest is expected to start in parts of the Midwest in the next two weeks, says noted US forecaster Jack Scoville. Below we bring you Scoville’s exhaustive take on all major commodity markets worldwide.

By Jack Scoville for Born2Invest, Sep 26, 2017




US markets were little changed in Chicago and higher in Minneapolis as the US and international weather concerns remained important. Ideas are that current international price relationships will make for good demand for US Wheat, but sales shown in the export sales report from USDA last week were not strong. Even so, US prices are competitive in world markets and are now below offers from Australia in Asia due to reduced Australian production potential.


The market has been under pressure from ideas that there will be plenty of wheat available in the world market due to the big increase in production in Russia. Russian prices are trending higher now due to the demand there and farmer holding. Canada has also forecast better than expected production for the current year. Canada has suffered through conditions very much like the US, with hot and dry weather in western sections of the Prairies. 


Australia also suffered from the hot and dry weather at key times in the growing cycle, and less production has been forecast by ABARES and other sources. Production ideas are now near or below 2o million tons for the country, but ideas are dropping as it is still dry and the plants are trying to fill kernels. Argentina has seen rains for the last few weeks and the crop is trying to get ready for harvest. Demand for US Wheat remains primarily for HRW and HRS, the higher protein wheats grown in the US. 


For Scoville’s take on all major commodities including many valuable charts, link below:

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