"Opportunities to price more of the 2007 corn crop may develop over the next few weeks, said a University of Illinois Extension marketing specialist.

"December 2007 futures above $3.90, however, might require some new fundamental information," said Darrel Good. "On the supply side, the new USDA production forecast to be released on Nov. 9 will be important."

Good's comments came as he reviewed corn prices. Cash corn prices in some markets are at the highest level for the marketing year that began on Sept. 1. The recent strength reflects higher futures prices and a stronger basis.

The average cash corn price in central Illinois briefly dipped below $3 in mid-September and was just above $3 on Oct. 8. That average, however, was at $3.47 on Oct. 26. Since reaching a low of about $3.35 in early October, December 2007 corn futures settled at $3.72 on Oct. 26.

"The average basis in central Illinois was extremely weak in the pre-harvest and early harvest period, with cash bids on Sept. 20 averaging about 50 cents under December futures," said Good. "The weak basis pattern was widespread throughout the Midwest. On Oct. 26, the average central Illinois cash bid was 25 cents under December futures, very close to a 'normal' level.

"Higher futures prices and a stronger basis have developed despite an extremely large crop, the need for corn to be stored in temporary facilities, and high transportation costs. The strength reflects a continuation of strong export demand, higher energy costs, concerns about U.S. acreage in 2008, and a slowdown in the rate of farmer selling of the newly harvested crop."

Additionally, he noted, storage shortages may not have been as severe as generally expected.

"In Illinois, for example, the fall supply of crops--Sept. 1 stocks plus 2007 production--totaled about three billion bushels," said Good. "If storage capacity in 2007 was added at the same rate as in 2006, total capacity was about 350 million bushels less than the fall crop supply. That compares to a storage deficit of about 380 million bushels in 2004.

"Nationally, storage capacity was surplus by about 400 million bushels, assuming storage capacity was added in 2007 as the same rate in 2006."