Global Commodity Analytics and Consulting President Mike Zuzolo says strong cash corn basis around the country is telling a very different story than what the USDA stated in the last week’s supply and demand report, which could make for an interesting quarterly stocks report Monday. “Whether you’re talking about Illinois, North Dakota, South Dakota or Minnesota, there are cash merchandisers trying to get early corn very aggressively,” says Zuzolo. “It calls into question USDA’s old crop carryover. That’s one of the potential surprises in the upcoming stocks report.” Zuzolo thinks the corn supplies are not nearly as big at what the USDA promoted in latest WASDE report. “Unless it’s at the Gulf or unless it’s some terminal further down the line we can’t see, I don’t know where the 2.5 billion bushels of corn is, because it doesn’t look like, between basis levels and livestock feeding, we have a lot to be had.”
