From Agrimoney:
Brokers offer hope of revival in corn futures
Brokers, citing hedge fund positioning and the firm US cash market, offered hope of at least a temporary lull in the selling in US corn, even as prices staged a small rebound from their weakest close in four months.
Societe Generale said that it was mulling a switch to "bullish" from "neutral" in its rating on corn futures, given their "disconnect" with the relatively firm US cash market.Indeed, basis, the discount of futures to cash prices, has risen both inland, as measured in Iowa, and at Gulf of Mexico ports over the past month, a dynamic the bank attributed to resilient demand.
"Corn demand remains stronger than expected in both the export and ethanol markets," SocGen analyst Christopher Narayanan said."Feed demand, too, through the first two marketing quarters of 2013-14 suggests higher-than -expected demand when compared to the historical percentage use by marketing quarter."'Poised for a modest rally'The outperformance of the cash market could well "suggest that nearby corn prices are nearing a bottom and poised for a modest rally", Mr Narayanan said.If upward pressure from cash markets "continues for a sustained period of time, one can expect flat price to eventually rally"....MORE
Corn: $4.41-4 up two cents, wheat $5.96-4 up 5-6.
We were able to trade last year's decline, and caught the upmove from $4.275 to $5.00 but right now this is a bit treacherous.
One strategy might be long calls and pray for catastrophe.
And from FinViz:
