Export have increased nearly 300 million bushels over year ago levels, while domestic food and industrial use continues its steady gains. New crop corn markets have broken out below support as weather has allowed for planting in the mid-west. Even though the Prospective Planting Report indicated a reduction in corn acres was likely this year, a total supply very close to last year is likely due to the heavy carry-in stocks that will be on hand this fall. The fundamental picture for the 1999 crop at this point looks very similar to that for the 1998 crop. In looking at marketing strategies we need to understand that without a major threat to the crop, it is unlikely we will see much of a price rally this year.
Supplies are quite adequate to meet any unexpected demand as well.
So, we may be forced to focus on relatively small pricing opportunities. Be prepared to move ahead with any sales that need to be made at or before harvest. Use any rallies as pricing opportunities. Technical analysis can be a value tool in finding possible future price levels. Stop by the FSA office and find out what you need to do to be in position to claim any LDPs.