- Corn has started the battle for acres next season.
- The opponents are soybeans and cotton.
- Corn will need increased acres and increased yields to rebuild tight supply.
Rice: Bearish news:Large rice supplies in the United States could limit upside price potential. Weekly export sales less than 50,000 tons were perceived as low but that is above average for this time of year. Most of the rice was sold to Latin America as usual. Asian business has not picked up yet. Some Vietnam rice is selling under the minimum allowed by their government.
Harvest in our area is 75 percent complete. Expect harvest pressure to reduce prices only if corn and wheat prices drop. All of these markets are oversold and subject to trader profit taking. Trader open interest in rice markets is high over 18,000 buy contracts.
Bullish news:The rice uptrend remains intact. As wheat follows corn higher it leads rice up also. U.S. milled rice is underselling Asian rice from our two main competitors, Vietnam and Thailand. Latin American imports remain strong. Lower prices could attract Asian customers.
Rice market prices came within a dime of their yearly high this week. Higher grain prices are supporting higher rice prices.