The January USDA WASDE report delivered an unexpected and sharply negative outlook for corn and soybeans. According to Van Ahn and Company’s Kristi Van Ahn, the report caught the trade off guard and added more pressure to an already large supply situation. “Definitely a very negative corn report,” Van Ahn said. “You are at a production level of over 17 billion bushels, that’s 2 billion bushels more than last year for corn production.” Van Ahn is worried about basis levels. “Corn rallies will be met with farmer selling, and I think opportunities will be very few and far between.”
