WASDE report shows corn has potential to become “yellow gold” in 2011

Market Pulse: Feb. 14, 2011

This past week July 2011 corn opened at 692.25 and closed the week at 722.

Wednesday’s WASDE report had a much more bullish view of corn than beans or wheat. We saw corn ethanol usage increase as well as increased usage for corn to make high fructose corn syrup as sugar prices continue to rise. The coming perspective planting report on March 31 will be important as farmers will have to decide what to grow. Many cotton farmers who switched to corn will have to seriously look at going back as cotton prices are at all time highs. If the United States has a corn planting season like it had in 2009, corn prices will definitely break 765, which it hit in June 2008. Any planting problems at all will take corn to all time highs.

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