Thursday, August 13, 2015

Corn Traders Just Got Crushed

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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