The August WASDE report came out on Monday and the bearish data caused corn prices to crumble down limit, while taking wheat with it. Soybean prices were not affected as much, but still saw double digit losses on Monday.
The biggest loser from the WASDE was corn, which saw a 6% loss on Monday. Most speculators were bearish on corn heading into the report, but did not expect the losses to be this great. December corn finished Monday at $3.8525 and $3.92575, which was good for a 25-cent loss. In addition to the loss in price, the USDA also dropped their planted acre estimate down to 90.000 million, down 1.7 million from their estimate in July.
RJO Futures Senior Market Strategist, Tony Cholly, is wary of this data and left the WASDE with more questions than answers saying “11.2 Million Acres in Prevent Plant as of now (which we expect to increase). Was this included in the 90 Million Acres planted released today? (which means farmers intended to plant 101.2 MA, which makes no sense) Is planted acreage 90 million + the 11.2 Prevent plant, or is it 90 million minus the 11.2 (78.8 MA planted, which seems low but almost makes more sense for the year we’ve had)? This, to me, is the biggest question out there right now”.
Keep a close eye on the market and see how it responds throughout Tuesday’s trading session.