Corn Sitting Higher at Midday

Midday prices have backed off from their spike reaction, but are holding with 1 1/4 to 3 3/4 cent gains. Dec printed a $5.07 high after the report. Futures were fractionally to 2c higher ahead of the data. USDA left the old crop cash price at $6.60, but raised new crop a dime to $4.90. 

USDA flashed a 143,637 MT new crop corn sale to Mexico this morning. 

USDA’s August reports reduced the new crop corn yield by 2.4 bpa to 175.1, which was just under the trade average guess. That set output at 15.111 billion bushels as acreage was UNCH in the report. Total supply was a net 155 mbu lower after a 55 mbu looser old crop carryout picture. USDA trimmed old crop FSI by 20 and exports by 25. For new crop demand, USDA cut feed and residual by 25, FSI by 20, and exports by 50. That on net tightened stocks by 60 mbu to 2.202 billion. 

The old crop picture on the global stage saw a 2 MMT hike for Brazilian output to 135 MMT. Yesterday, CONAB raised their corn production forecast by 2.2 to 130 MMT on better 2nd crop yields. Old crop carryout was 1.6 MMT looser at 298 MMT. For new crop, Ukraine was 2.5 MMT higher, though the EU was down 3.7, China was 3 MMT lower and South Africa was cut 1.7 MMT. China’s CASDE left corn production unchanged from their July estimate, but cited the extreme weather may have overwhelmed the crops. That lowered the total output 11 MMT to 1.214b MT. Ending stocks were 3 MMT tighter to 311, compared to the 314 MMT expected going in. 

Sep 23 Corn  is at $4.86 1/2, up 3 1/4 cents,

Nearby Cash   is at $5.26 1/8, up 3 1/4 cents,

Dec 23 Corn  is at $4.99 1/2, up 3 1/4 cents,

Mar 24 Corn  is at $5.12 1/2, up 2 1/2 cents,