Corn harvest progress was a little below expectations (but still well above last year, as well as the five year average), and corn can see some additional harvest pressure. The U.S. Department of Agriculture reported Monday that 22% of the U.S. corn crop was harvested as of Sept. 23 (above the 12% combined last year, as well as the five year average of 14%).

This big corn crop is in the market, and everyone is aware of it. China has ended corn exports and will eventually become a corn importer. The U.S. is the primary corn feed grain source to the world, and is also the least expensive. Corn is $5.50 in China, $7 in Europe, and $4.50 a bushel in Brazil. Last year the corn market put in its low in August, and the commercials missed the opportunity to buy corn at a low price during harvest. The U.S. will produce a record crop, but the stocks to usage ratio will tighten because of strong global demand. The fight for acres will be more intense than ever next year. And at these prices, producers will plant wheat and beans with the same enthusiasm they planted corn this year. Agriculture is so exciting these days. We think it is going to be this way for a few more years as the forces of supply and demand swing back and forth. Get bullish the corn market. Call your RJOFutures representative and discuss bullish corn strategies. (If you are looking to open a trading account at RJOFutures, you are coming on board at a very exciting time for our markets.)

The U.S. Department of Agriculture reported that 12% of the U.S. soybean harvest was completed as of September 23-above the average of 11%. The underlying theme of the soybean market remains bullish as the need to buy additional soybean acres in South America and in the U.S. next year amid tightening stocks and growing demand remains a big bullish support for beans. We are long December 07 Soy Meal and short July 08 Soy Meal. We like the chart pattern of that spread. We were long July 08 Soybean and short November 08 Soybean. We will get back in long SN8 and short SX8 on a pullback.

Many are calling for a top in the wheat market. Algeria bought 330,000 tons of HRW wheat from the U.S. last night. As long as countries keep buying wheat at these prices, perhaps the bull market continues. You need to feed a bull everyday. We will need bullish news daily to keep this wheat market going.