Lower Yield and Lower Acres Provide Buoyancy to the Corn Market – Moe Agostino
Corn drives the agriculture commodity complex which provides great coffee shop and water cooler fodder. Demand for corn has been strong and supplies have been tight which has made the market strong. One of the scenarios livestock producers were hoping for was for the 2011 crop to produce strong yields and a cushion in the S/D chart. With drought and floods across different regions of the United States, farmers and livestock producers are preparing for even higher prices through the summer and fall.
I talked to Moe Agostino, Farms.com about the corn market and what he thinks could be the top end of the trading range for corn for the rest of 2011. Is the top end $8.00 or $9.00 per bushel. How far will the WASDE report back off the original forecast of 93 million acres? With the droughts and floods in the US, what will be the expected yields? How tight is tight for the supply and demand charts?
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