Sept Corn closed 1 cent higher ($3.11 ½), Dec ½ cent higher ($3.23 ½) & March ½ cent higher ($3.35 ¼)
Sept Chgo Ethanol closed $0.037 cents a gallon higher ($1.217), Oct $0.037 higher ($1.216)
Today’s early rally was attributed to “coffee shop” talk about yesterday’s windstorm that moved through Iowa, southern Wisconsin, Illinois, and Indiana. We also saw some spec position squaring (modest short covering) ahead of tomorrow’s USDA production/supply-demand report. CONAB (the Brazilian version of our USDA) reported this year’s corn crop is now 102.142 M T. (up from 100.559 M T. in July and vs. the USDA at 101.0 M T.)
Expected USDA corn yield – 180.5 bpa vs. 178.5 last month
Expected USDA corn production – 15.174 billion bu. vs. 15.000 last month
Expected USDA new crop corn carryout – 2.800 billion bu. vs. 2.648 last month
Expected USDA old crop corn carryout – 2.271 billion bu. vs. 2.248 last month
Expected USDA World new crop corn carryout – 320.32 M T. vs. 315.04 last month
Expected USDA World old crop corn carryout – 312.62 M T. vs. 311.95 last month
So the big question going forward – USDA is expected to hike supply. Can they increase demand to the extent it offsets?
Daily Support & Resistance – 8/12
Sept Corn: $3.05 (?) – $3.22
Dec Corn: $3.17 (?) – $3.34
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.