The market shook off a historically bearish first look at a new crop: the Jul-20 contract’s highest close of the week came on the day of that report. The same scenario played out for the December contract. It appears traders are content to let things unfold before pushing futures either direction; the contract has only moved $0.10 per bushel lower over the last month.

The question remains as to whether all the demand destruction experienced over the last two months has been absorbed in the balance sheet for 2019/20. And it’s not just the U.S. looking at sizable corn supplies. With few exceptions, global production seems to be on the up and up as well. The global stocks-to-use ratio is currently projected at 29.2 percent for next year, up from 28 percent in 2019/20.

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Global STU vs. CBOT futures seasonal average

Source: USDA, DTN
Posted by: Information Services
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