Posted 4/12/2019 19:49 (#7436028) Subject: Dec 2020 Corn
While the current corn market does not look very appealing, Dec 20 corn is still at decent levels. Dec 19 has lost 15 cents in the last 2 weeks, while Dec 20 is higher than it was.
For some thinking there will be a spring rally, we could have one and still not see a much better price for Dec20 as we have now. Last summer, when Dec 18 went up 25 cents to 4.25, Dec 19 only went up 10 cents topping out at 4.24 as the Z/Z spread tightened. The spread right now is very wide (27 cents), therefore has plenty of room to tighten.
Just a thought as the corn demand outlook seems to be deteriorating between weak exports, gutting of ethanol demand, ASF in other countries, and its potential to hit the US hog herd.
Maybe time to hedge a little of those risks and take a cookie while the plate is sitting out?