Fundamental corn outlook — Short-term bullish — Corn prices are in correction mode from recent losses sparked by USDA’s hike in its global production estimate to a record and its U.S. and global ending stocks estimates. Corn has underlying support from dry weather concerns in South America, record U.S. ethanol output, and tight U.S. and world corn supplies. The corn 2011-12 stocks/use ratios are very tight with the U.S. at 6.7% and the world at 14.6%.
Fundamental soybean outlook — Short-term bullish — Soybean prices remain bolstered on South American weather concerns. Prices had plunged to yearly lows after the USDA raised its global production and U.S and global ending stock estimates. Tight U.S. 2011-12 stocks/use ratio of 7.6% also may limit further declines. Global soybean supplies are adequate with the 2011-12 world stocks/use ratio near average at 24.8%.
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