Big crops did get bigger

November 9, 2016 8:42AM CST

WASDE came out with its monthly Supply & Demand report today, and confirmed that the corn yield of the corn crop did increase. The yield on the month to month report showed an increase from 173.4 bushels per acre to 175.3, which was the high end of the estimates. Carryover is larger also. It went up from 2320 million bushels to 2403.

The demand side of the equation is going to have to hold or get better in order to use the large supply. To be competitive, prices will have to work lower. Hopefully we will see increased demand from other countries. We have now shipped corn to Brazil fir the first time since 2002. They have approved over GMO variety for feed consumption. Time will tell whether other countries will increase their purchasing.

With the increase in supply, Corn could go down to the mid 330 area.

Corn Daily

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.