By Kevin Roepke, USGC Manager of International Operations

Corn rallied today on rumors that the Chinese continue to buy. Chinese domestic corn prices remain uncompetitive versus the global market—hovering somewhere around $9.60-9.70 per bushel. Bears will argue that the cooling of their economy will slow buying. If the Chinese economy grows at 7% vs. 8% vs. 9%, who cares? The fact still remains that their increased appetite for an improved diet—and therefore grains—will prevail.

Interesting and newsworthy topics from the week include:

1. WASDE was released today. No changes to the U.S. balance sheet on corn, sorghum and barley. This is quite amazing actually. The trade estimated the carryout at 785 million bushels, making the unch’ed carryout of 801 million bushels “bearish,” albeit only slightly.

2. Trade will be focusing their attention on the March 31 Prospective Plantings report.

3. Informa came out with their revised acreage projection. Estimating 2012/13 corn paintings at 95.5 million acres. They also showed an increase in soy acres—touting over 75 million—giving new meaning to the term “sod-busting.”

4. Acreage is getting the bulk of the press right now, but he biggest question mark and driver behind production “this” year will ultimately be yield. When you have numbers ranging from 145-170BPA, too much is at stake to speculate.

5. South America is experiencing its ritualistic logistical nightmares between strikes, lines, and poor/broken equipment.

Check out this week’s Market Persepectives.