A week ago the USDA issued crop reports hinting that the market may have forgotten about the precarious balance between supply and demand.

  

Next month, the USDA is going to take another look at its acreage numbers.

  

However, today, China's purchases push the Gulf corn basis is 100 over Chicago.  While harvesting wheat in western Kansas this past weekend, not one farmer that I spoke to on my trip down has over a couple thousand bushels of uncommitted corn.

 

Two years ago I shared this article about China's appetite for commodities and I would like to share it again today.

 

Corn in China

 
While I was in China a few weeks ago, I came a cross a female farmer who had dumped her crop on the street to 'fumigate' it for weevils...almost kernel by kernel.

 

Stay tuned for a recap of my trip.