More importantly, investors are highly anticipating the crop production report due out on Friday. The average production estimate for the 2007-08 crop year is 12.909 billion (23 analysts), 69 million bushels above the 12.840 billion estimated by the USDA in July. The average yield estimate is 151.2 bushels per acre (23 analysts), approximately 1 bushel above the USDA's estimate.
In an article published Tuesday, CNN's Jeff Cox states "many analysts are expecting corn prices to surge over the next several months as farmers give back this year's unprecedented corn plantings of about 90 million acres to wheat and soybeans."
Wheat and Soybean prices currently look very attractive to farmers right now.
However, as long as crop production is above analyst expectations, corn prices will remain steady. Anything lower, though, is likely to result in a runup.
Ethanol producers are feeling the impact:
Aurora plant: $3.15 per bushel
Fort Dodge Plant: $3.05 per bushel
Charles City Plant: $2.95 per bushel
US BioEnergy (USBE):
Platte Valley Plant: $3.26 per bushel
Woodbury Plant: $3.30 per bushel
Ord Plant: $3.30 per bushel
Pekin Plant: $3.16 per bushel
Iowa Falls Plant: $2.88 per bushel