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Corn Commentary


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Commentary:The Chinese have purchased approx 1 mmt of corn. There are thoughts that they could purchase another 1.5 mmt in the near term. This is a positive to be certain. It looks as though the near term low basis may of 332 could be the temporary low. There are a few near term supportive factors. However, it cant be forgotten that the world at present is not short physical availability of corn. In addition, the ethanol margins remain a deficit which is prompting a slowdown of the process rate. This at present is manageable if the US gets back to work. Given the concern over corona, when this will transpire remains a moving target. The bailout package for AG is large, how it breaks down will need to be understood. It certainly wont do anything to curtail plantings. Now the question is what the acreage breakdown will be. If the corn can gain the near term Chinese demand, and 1-2 million acres switch or are not planted due to some weather issue, then the corn has a chance to build from here and move a bit higher. As always exercise caution and quantify your risk.

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BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
www.walshtrading.com

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

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About the author


John Walsh, President, Walsh Trading, Inc.

John began his career in the futures industry in 1986 at privately held firm, Barnes and Company. Barnes and Company was known for its presence at the Board of Trade, particularly in the agricultural sector. From Barnes, John held positions at the privately held firm, Argus and then at Continental Grain. During his time there, Continental Grain was one of the largest clearing firms in the world. Continental Grain had, and continues to maintain, extensive holdings in the cash cattle, poultry, swine, and agriculture industries. At Continental Grain, John had various responsibilities including working for the Options Group and the Risk Management Group where he serviced clients located all over the world.

 

In 1996, John left Continental Grain to found Walsh Trading, Inc., currently a registered Independent Introducing Broker (IIB) and an NFA member with the ability to clear at multiple, futures clearing merchants at the benefit of its clients. John’s focus at Walsh Trading has been on hiring and cultivating talented individuals and building relationships throughout the industry. Walsh Trading services some of the largest companies in the world, in their respective fields, as well as individual investors with a commitment to always putting the needs of its customers first.

 

John trades all markets, but concentrates his efforts in the agricultural sector, more specifically in the relationships revolving around the soybean crush. His trading methodology is based on fundamentals and a personally designed technical system.

 

Contact John
Phone: 312-208-8837 or 800-993-5449
Email: jwalsh@walshtrading.com

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