The corn market lost 10 cents last week as there were no big surprises in the U.S. Department of Agriculture supply and demand report. Traders were expecting tighter stocks and an increase in exports, which did materialize and was built into the market.
The corn market remained unchanged last week and traded near $6.40 in the March contract. The futures traded in a sideways pattern last week as it lacked any fresh news. Decent export sales last week, a firm cash market and lack of farmer selling offered support.
Corn started last week trading with strength due to continued weather concerns in South America, primarily Argentina. But the gains were short-lived once USDA’s reports were released. USDA’s Final Crop Production report was not friendly for corn, as USDA raised 2011 U.S. corn yields and harvested acreage.
Area farmers are evaluating which crops to plant this spring. Crop prices are high enough that most crops project a profit, at least on paper. But complicating the decision — and possibly accelerating the need to make firm planting decisions — is a shortage of seed for many crops.
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