Following the report day losses, midweek corn quotes are up by 1 ¾ to 4 cents. Preliminary OI data showed net new selling, increasing 7,061 contracts. Futures closed 7 ¾ to 9 ½ cents in the red after corn got the expected yield cut in the monthly WASDE report but net higher production overall after USDA counted additional US acreage.
USDA’s monthly Crop Production report had corn yield 1.3 bpa lower @ 173.8 bpa. The trade average guess was to see a 173.5 bpa national yield. At the state level, NE was cut by 7 bpa to 177 bpa. Iowa and IL were each trimmed by 3 to 200 and 198 respectively. NASS bumped OH and MO 4 and 2 bpa respectively to 195 and 145. NASS also lifted the corn area by 800k acres to both planted and harvested. That left production 23 mbu higher – compared to the nearly 100 mbu cut expected. There were no demand changes made for new crop, thus the carryout was set at 2.221 bbu.
Global corn numbers were for slightly higher output, reflecting the U.S. and Ukraine. Carryout was upped by 3 MMT to 314 MMT. Brazil was loosened via carry-in, and Argentina offset Ukraine’s boost. China’s CASDE estimated 23/24 corn output at 284.9 MMT.
Sep 23 Corn closed at $4.63 1/4, down 8 cents, currently down 8 cents
Nearby Cash was $4.53, down 9 3/8 cents,
Dec 23 Corn closed at $4.76 1/2, down 9 1/4 cents, currently up 3 1/2 cents
Mar 24 Corn closed at $4.91, down 9 1/4 cents, currently up 2 3/4 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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