Corn Futures Market News and Commentary
Corn futures were skeptical coming out of the USDA reports but rallied into the close to post 10 ½ to 14 ½ cent gains in the front months on Friday.
The NASS Crop Production report showed the initial corn yield at 175.4 bpa. That was down 1.6 bpa compared to the WASDE balance sheet in July and 0.5 below the average trade estimate. It took production to 14.359 bbu, a 146 mbu drop. USDA also raised their old crop carryout in the monthly report by 20 mbu to 1.53 bbu. That increase came via a cut to the FSI use. The larger stocks mixed with the production reduction and a larger export forecast took new crop stocks to 1.388 bbu, a 82 mbu drop from the prior report.
The WAOB also took the world ending stocks number to 306.68 MMT, a 6.22 MMT reduction. That was led by the US and EU production cuts, with the latter down 8 MMT to 60 MMT. Ukrainian production was raised 5 MMT to 30 with exports up 3.5 MMT.
The CFTC Commitment of Traders report showed spec funds increasin... Read more