- Chicago markets rallied early but could not sustain the early gains into the close. Fund buying was notyed early in the session.
- China’s Ministry of Agriculture indicated on Monday that it would export 1.7 million mt of corn in the current crop year and 2.3 million next year. The export proposals came as a surprise, but are part of a growing chorus within China that it will try to export corn before the end of 2016. Private sources peg China’s corn exports at 5.0 million mt in the 2016/17 crop year. China has not yet finalised its new farm policy program, but the growing supplies of corn has many expecting that China will shift from being the world’s largest feedgrain importer in 2014/15, to a net feedgrain exporter.
- No one seems to care that China’s Ministry of Agriculture is considering and asking the Gov’t to export corn. It seems today’s early rally was based on the flow from the funds. Farmers are more active sellers from S America while US domestic end users lower their basis or withdraw on the CBOT rally. Tuesday could provide an interesting turnaround if new contract highs cannot be scored. Our view is that new highs will not be scored and that this volatile trade will persist.