Corn bulls are talking about the possibilities of the USDA actually lowering their current corn yield estimate in the upcoming year-end report, potential production problems in areas of Brazil, and India now rumored to be looking to import corn from overseas for the first time in many years. Unfortunately, the bears are keeping a lid on most all rallies by continuing to question growth in U.S. demand and overall growth in Chinese demand.
Lets not forget, Brazil continues to surprise the trade as of late by exporting heavier doses of both ethanol and corn. We also have the headwinds being created by good weather in Argentina and the fact their leaders recently agreed to lift the 20% export tax that had been in place. Meaning we're seeing a wave of cheaper Argentine corn starting to hit the marketplace.
As a producer, I still believe we could see another leg lower in price, but doubt the trade makes many bold moves until it fully digests the USDA end-of-year data scheduled for release on January 12. I'm comfortable in having 30% of our estimated new-crop corn production priced, at what now appears to be great levels, and see no reason to be in a hurry to price more. Stay patient!