Declining yield and crop production ideas and outside markets are expected to push corn prices higher. Corn condition ratings fell 3 points last week to 57% good to excellent. This compares to 70% last year and the ten-year average of 59%.
Weather forecasts do not show much rain in the dry areas of the central Corn Belt. Strong gains in Dow Jones futures and weakness in the dollar overnight should help extend gains.
The market is concerned with the dry hard red winter wheat areas of the South West. Planting is not that far away.
But although there were signs of demand too, with United Arab Emirates unveiling a 75,000-tonne tender (Egypt unveiled its latest tender after the market closed), on the bearish side the squeeze caused to US spring wheat supplies by a delayed harvest may be about to ease.
While a US Department of Agriculture crop report later is expected to show "limited activity" on the spring wheat harvest last week, "good progress should be made this week", Benson Quinn said.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.