Corn (and soybeans) are plunging, limit down on CBOT following data from the August WASDE report. The
USDA unexpectedly raised output estimates
for corn stocks and production dramatically higher than expected. This
in and of itself would send corn prices lower but the significance of
the shift is likely exaggerated by the fact that
satellite imagery had suggested signficantly worse crop conditions ahead.
One wonders who will be right?
from WASDE:
- Corn end stocks: 1727MM, Exp. 1427MM, Last 1599MM
- Corn production: 13686MM, Exp. 13323MM, Last 13530MM
Which sent the prices limit down...
But, as Bloomnberg reports, daily
infrared images of U.S. farmland captured by satellite indicate
worsening conditions for this year’s U.S. corn crop, according to one
data-analysis company. (more)
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