Traders are expecting Tuesday’s USDA report to show U.S. corn carryout well over three billion bushels. The planting season is on track to meet USDA’s estimate of 97 million acres planted to corn. “We probably don’t need that many acres for corn,” explains Ted Seifried, chief market strategist, Zaner Ag Hedge. “Just looking at the balance sheets being offered ahead of Tuesday’s report, the average trade guess is looking for a more than three billion bushel carryover for corn. There’s some worry about demand considering all that’s going on. That could keep the lid on a corn rally.” Seasonally, corn tends to bottom during planting. “This is the time of the year where we’d see a little bit of strength. The funds are rather short so maybe we could squeeze a bounce, especially if we have some weather concerns. We do at the moment. We’ll see what happens.”
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