Corn is trading 2-3 higher this morning after talks yesterday that China had stepped up and booked its first purchase of US corn. Corn prices have risen despite fund managers increasing their record net short position. The USDA confirmed yesterday’s rumor with an announcement on the daily system that the Chinese had purchased 300 MT of corn. This is a good sign with the US negotiating team arriving in Beijing this weekend.
I don’t expect the market to move dramatically either direction in the next several months unless we see a significant weather issue. (Excessive wet spring or widespread summer drought) Next Thursday the USDA will release its quarterly stocks report along with the 2019 planting intentions. Estimates are for corn acres to increase by 2-3 million acres. I believe the market has 1-2 million more acres traded so far and could trade lower if we come in at 3 million.