Indiana Grain Company, LLC

Posted: 11/30/11

By: tomgrisafi

Corn has certainly bounced in recent days.

But lets not forget the sustained free fall of the last few weeks.

So has corn finally found its footing as we enter the last month of the year?

Corn settled Wednesday up 2.4 cents per bushel at $6 for December delivery and up 1.4 cents per bushel to $6.07 for March delivery.

“The market is looking for true value,” Don Roose of US Commodities told the DesMoines Register this week.

"Cash bids have been the story of the month, with elevators bidding $5.83 or more for cash corn and ethanol plants offering $6 for delivery. Normally the so-called “basis” price is 25-35 cents per bushel below the Chicago Board of Trade futures prices," the report reads.

“Ethanol demand is still strong,” Roose said. The U.S. Energy Information Agency’s weekly report showed 3 percent more corn used for ethanol production last week than would be necessary to reach the 5 billion annual consumption for ethanol projected by the U.S. Department of Agriculture.

Even with the recent drop in prices this year’s Iowa corn crop is still valued at $13.8 billion at this week’s prices, well above the $8 billion in 2010 and the record $8.9 billion in 2008.

Source: Des Moines Register

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