A bullish WASDE report last Monday pushed spot corn futures above $7 per bushel for the first time in two months, hitting $7.12 per bushel on that day’s close.
S&D and fundamental factors
Monday’s WASDE report was in line with expectations in terms of corn yield, seeing a reduction of 2.9 bushels per acre to 172.5 bpa. What did surprise the market: Planted and harvested area dropped by 1.2 and 1 million acres, respectively.
2022/23 corn ending stocks now stand 1.219 billion bushels, and the stocks-to-use ratio is now seen at a very bullish 8.5 percent.
Weather, macro indicators, and news
Early last Thursday morning, a new tentative deal was reached between two railway unions and the railroad companies, which avoided a strike today. Some delays may still occur, though, as some terminals and rail lines were already preparing to idle assets.
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