With both the USDA planting intentions report and the quarterly Hogs and Pigs report released today, an active day for those who follow markets and try and estimate impacts. The corn market responded to the report by ending limit up on near-by corn and $0.15-0.18 up for new crop corn. Bean were up even higher based on the lower than expected planted acreage estimate.
If you’ve been following the US corn market, this past week the trade took nearly $0.50 off of the price of bushel of corn. New crop corn bids at country elevator points that I routinely follow dropped below $5/bu earlier this week. The tight carry-out stocks estimate is making for some interesting bidding at country elevators and ethanol plants.
For example, the Farmers Cooperative Society in Sioux Center, Iowa, a major buyer of corn for livestock feed, is bidding -0.06 basis for April delivery and is $0.04 positive basis for August delivery. However, they drop to -$0.45 for October delivery, a basis closer to the historic basis for the region.