Corn Market In a Position For a BouncePosted 07/24/2019 1:41PM CT |
The corn market has been a crazy mess this spring/summer. It started with major planting delays and what did get planted, was planted on wet ground. This makes for shallow roots and unhealthy corn. This was followed by a dry spell, which lasted so long it became burdensome to corn yields. Weather is improving, and the market is pulling back because of this.
On June 30th, the USDA released projected planted acreage and somehow came up with 91.7 Million acres. These numbers were from a June 1st survey and at that time most farmers “intended” on planting. The USDA flat out said they messed up and began to re-survey 14 states, which they will release August 12th. We believe the 91.7 million will drop below 85 million acres, and some research companies are pegging their numbers at 81-82 million acres. On top of this, the stress on the crops should drop yields into the 150’s, which is just another bullish factor.
We are looking at getting some long exposure through the August 12th report. December corn support comes in at 427 and below there at 420. Resistance comes in at 435 and 438 today.