With corn planting starting in about 30 days, the western Corn Belt is currently dry and the east is extremely wet. Combined with the dryness in South America the market is noticing these less than ideal conditions and making adjustments.
Two months ago farmers were hoping for a 20-cent rally to sell some corn. Now after a 30-cent rally, many continue to hold on thinking there is more upside potential. Basis values are slightly off their highs, but considering the large futures run up, not as much as I would have expected. That is likely a sign of a lack of farmers selling.
Last week’s USDA report indicated an increase in corn exports, which is helping to reduce the massive supply from the last few years. Corn may have finally turned a corner as summer approaches. Now the market will wait to focus on the end of March report concerning planting intentions.