Corn traders seemed little surprised by the USDA's estimate of 89 million corn acres being planted in 2015 vs. the 90.6 million planted in 2014. More of a surprise might be by the continued strength in demand for the ethanol sector.
From a supply side argument, most in the trade continue to question just how many second-crop corn acres will get planted in Brazil and under what conditions? Here at home, weather is starting to gain a bit more attention, especially as we get closer to prime planting season. Speaking in large generalities, there are some concerns brewing for producers in the Northern parts of the corn belt and those in the Southern Plains. We also need to keep our eye on production west of the Mississippi as conditions seem to be getting a bit drier.
Lets not forget there are also some question about a few key areas in China. The U.S. and Chinese weather concerns are much further out on the radar screen, so I doubt they will gain much market attention in the coming sessions. I just want to note that the cards are in the deck, but how they ultimately play out is still anyones guess. For those scoring at home, I released a special report yesterday to paying subscribers, detailing my latest corn sale. As I mentioned in the report, I'm not aggressively bearish, I just needed to reduce more new-crop risk exposure.