Corn market awaits WASDE

Some fundamental information came out last week to drive corn futures prices, but the dominant market factor was the risk-off/risk-on trades of the speculative community. This allowed corn to drop to short-term support around $4 for the Mar-21 contract before retracing to near $4.20 [...]

Corn acreage shocks the market

In what can only be described as a historical market shocker, the nation’s farmers last week indicated planted corn acres at merely 92 million, per USDA’s Acreage report. Although this reflects an increase of 3 percent over last year’s late-planted crop, it is down [...]

Corn market shrugs off bearish WASDE

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 [...]

USDA forecasts record 2018/19 soybean ending stocks

Friday’s WASDE report was undoubtedly bearish, led by the unexpected hike in soybean ending stocks. Ahead of the report, analysts were projecting 2018/19 soybean yield to increase, with the average of expectations being around 49.8 bushels per acre (bpa). USDA’s much stronger increase to [...]

Large inventories + low prices = less acreage?

As we learned in Economics class, when supply gets burdensome, prices fall to disincentivize production. Lower production then increases prices, bringing the market back to equilibrium. The U.S. and South America have held burdensome corn and soybeans supplies during the last five years, leading [...]