US - A new Rabobank report finds that a late 2014 harvest and strong incentive to store corn has created an early season US corn deficit.
Due to storage and potential for transportation disruptions, opportunities for securing physical corn stocks may be best in November.
Storage liquidation is only expected to begin in Q2 2015.
Despite a record 2014 US soybean harvest, October rallies in soybeans (+14 per cent) and soymeal (+38 per cent) futures were fuelled by strong demand and a near-empty soybean pipeline.
A long drawn out harvest has slowed the restocking of US soybean inventories.
Harvested US soybeans have gone directly to both the export pipeline and domestic crushing facilities to fill both back and current orders.
It will take time for US crushers to fill all their orders, so end users should not expect cash prices to decline until the end of November or shortly thereafter.
You can view the full Rabobank report by clicking here.