Time certainly has flown by and we are already about the enter mid-July. As we enter mid-July, we are waiting on the WASDE report which is due out Thursday July 11th. The July report is often thought of as the most important edition of WASDE because most of the crops that feed the world are deep into their growing season and it gives us our best estimate of what to expect. Weather is and will continue to be the most pressing issue for grains. The mid-west experienced one of the wettest springs in recent memory and the subsequent flooding from all the rain delayed planting and caused plants to enter summer at younger stage in their life cycle than they should.
Corn seems to be a main point of contention and uncertainty. RJO Futures Senior Market Strategist, Frank J. Cholly, had this to say about corn, “The corn market seems to be pricing in big acres still. I don’t agree with it, but it seems like corn is going to retest recent swing low. This report isn’t likely to have any new data, therefore it doesn’t support prices at this time.”
RJO Futures Senior Market Strategist, Tony Cholly, echoed this sentiment saying “Look for corn to be choppy/lower until we get accurate acreage data from the re-surveyed states. I expect 91.7 million acres to drop closer to 85 million, but we shouldn’t see much upside until these numbers are released. (unless more weather issues come up prior to the release of the new data.)”
The WASDE is due out July 11th and 11am EST and that should give us a lot of answers.
Corn Sep ’19 Daily Chart
