Indiana Grain Company, LLC

Posted: 11/14/11

By: tomgrisafi

Corn prices have traded in a sideways pattern for close to a month, but are now in the lower end of that range.

Similarly, soybean prices have also trended lower since early October, with January futures now approaching the October lows.

Corn prices haven't been bolstered by last week’s USDA Crop Production report which delivered a lower forecast for the size of the U.S. crop.

The U.S. average corn yield is projected at an 8 year low of 146.7 bushels - 1.4 bushels below the October forecast.

Any chance of a price spike was undercut by the USDA’s judgment that feed and residual use of corn will only reach 4.6 billion bushels during the current marketing year - 100 million below the October forecast.

The pace of domestic feed and residual use of corn will be revealed in the USDA’s December 1 Grain Stocks report. That report is due out January 12th.

Source: CME, Drovers Cattle Network

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