Corn market rallies as harvest nears completion

2017/11/23 15:32:06

Ukrainian sources contacted by UBO believe a combination of strong Chinese interest in corn in part to help fight domestic pollution problems and strengthening USD – weaker UAH – could provide some positive impetus for Ukrainian exports.


 

 

 

 

Brian Grossman  looks at the worldwide picture for Born2Invest, Nov 23, 2017:

 

It has been a slow, brutal death march towards the end of the year for the corn market. As the story goes, too much rain, not enough rain, falling crop conditions, burning up fields and the yield goes higher, prices go lower. Everything that can happen in a year, all wrapped up into one.

 

Ever since collapsing from July highs, the corn market has and continues to find comfort in a sideways to slightly lower market; trading a 25’2 cent range, slightly more than the daily limit, since September 1st. With harvest wrapping up and crop progress later today estimated to show corn harvest now 91% complete; where do we go from here?

 

Wrapping up last week, the corn market was able to offer up a surprise for many and a renewed sense of hope for producers still struggling with decisions as the calendar year comes to a close. Closing the week lower by 0’4 cent in the December contract and 1’6 in March; December (December options expire this Friday) was able to close the week 6’6 cents off the weekly and contract low.

 

With the largest upward move in nearly a month, many were wondering what happened. What could spark such a rally in the direction that seems to be the path of MOST resistance?

 

First off, the headline for the day was the kick off of another round of NAFTA negotiations with a fresh sentiment that Canada and Mexico are willing to be more flexible on issues that had previously been dismissed as impossible. However, rumors might be the real story behind Friday’s move.

 

These rumors consist of large purchases of US corn and US corn-based ethanol by China, potentially as much as 10 cargoes of corn and 18 cargoes of ethanol! Supported by the fact that China is working to ramp up their domestic ethanol production in a bid to reduce their degrading corn reserves as well as help alleviate extreme levels of air pollution across their major cities.

 

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https://born2invest.com/articles/corn- ... harvest-nears-completion/

 

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