Chicago Board of Trade Market News
Outlook: The next price influencing event is anticipated to be the publication of USDA reports on Tuesday, November 10, 2015. The data is unlikely to contain any major surprises, but there is a common expectation for a modest increase in projected U.S. corn ending stocks for the current 2015/16 season. Such an increase could dampen futures prices in the short term. Cash prices would presumably decline slower than futures and that could strengthen basis into the end of the month. Stronger basis may encourage cash sales in early December as U.S. farmers contemplate tax issues prior to the end of the calendar year. The importance of such factors is expected to decline after year’s end as the attention of market participants shifts toward South American weather and the strength of the U.S. dollar in January – and then on to U.S. planting intentions in February. Consequently, the outlook is that any near-term sell off in feed grain prices will be followed by a rebound in the first quarter of the 2016 calendar year.