December Corn Can

December Corn Can

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Good morning. It's Monday, May 11, at about 10:11am, here, I want to do a quick talk on December corn. Nice thrust that we had from January into March, breaking out of a one year trading zone in that 440, to 474, range. As you know the rules, the breakout we can sometimes come back kiss breakout point. And look at the moving average support kicking in here too. This is the 100 day moving average continuing positive. And this current lift struggled at 505, and three quarters since pulled back. I know many are saying that this is it can't do any better. I'd be very careful with that statement. President Trump is on his way to China. Had a horrible harvest, probably 30 million metric tons of their corn was ruined, and they want to buy some corn, and they like our corn to stockpile. So I think that's still potentially going to lift us to the 510, target. But keep in mind, there's more to this than just planting progress, throwing it in the ground fast when conditions aren't right, like too wet or too cold, that's not going to create a wonderful crop, especially with replanting. So thinking that we're running ahead wonderfully, that works good for headlines, but people aren't thinking. Keep in mind, we get to June 30, we're likely going to see the acreage reduced as well, and we are selling corn like crazy, another half million metric tons of flash sales today. The USDA had a big number, but they're still too low. That old crop carryout for corn can be pushed closer to 2 billion bushels. That translate straight into December corn. We move the carryouts forward. That alone, that number could get us down to 1.8 billion carried on new crop on paper, no weather, and then reduce those acres even more. Ladies and gentlemen, 510, target. That's nothing. We could be a lot higher than this, but I just want to show you that the biased should still carry us at least above five one more time. So you could probably throw some hedges on up there, or at least spectra to this upside before they try to bounce it. They'll probably do something like a ABC pullback. And then we get to June 30, when those acres get reduced. But ladies and gentlemen, this corn December contract, it's not done. There is more upside. Remember, past results are not indicative future results. And this is not trading advice. It's just helpful guidance for you to kind of make decisions on your own, follow and like us.

*This is not trading advice; past results are not indicative of future results*