Corn has been seeing some positive, noticeable market moves. In the latest USDA World Agricultural Supply and Demand Estimates (WASDE), corn stocks were lowered while soybean stocks are higher.
By 2020 or 2021, Arlan Suderman, chief commodities economist for INTL FCStone, is keen to these long-term dynamics in the corn market, mostly because Argentina, Brazil, China and the United States could all see smaller crops in the coming years.
Surpluses in both China and the United States are continuing to dwindle.
“The bottom line is demand is growing faster than supply, so we’re moving in the right direction,” said Suderman on AgDay. “Wheat is kind of a lid on the corn market helping prices drift higher.”