The Ag Trade: Pressure on Corn and the Impact From China

From the corn pit on the floor of the CME Group in Chicago, Chris Robinson Contributor for Traders Exclusive reviews the corn trade in front of Wednesday's Supply and Demand number. Traders are looking at December corn which has been real weak due to very good weather, planting is essentially done and the ratings are for the crop are high. In addition, the Chinese decided to stop accepting the United States' DDGs because of the GMO issue, or 250 metric tons and another 150,000 on the way that will be stopped. It could be a longer-term trade, but near-term, traders believe it is simply oversupply in China that needs to be processed from their own supply. This lends to a decent trade, and if you are bullish, you may be able to catch a bounce.