Questions and Uncertainty Surround the Corn MarketPosted 08/09/2019 9:47AM CT |
The market today seems to be starting to price in Monday’s USDA report, and expectations lean supportive. Demand is struggling mightily, which could be the reason we saw corn move 60+ cents lower over the last few weeks. The weak demand getting priced in. Most traders, farmers, and anyone in the AG industry seems to be expecting lower yields on top of much lower planted acreage. In June, they released projected planted acres at 91.7 million. Since that time, USDA has re-surveyed and will release “more accurate” numbers with August 12th report. I have heard estimates anywhere from 81 million acres all the way to still in the 90 million-acre range. I think it will take a number below 87 million-acres for the corn market to really see a move higher and possibly test the old highs. Obviously, yields, % harvested and weather will still be factors moving forward for corn pricing. Support is seen at 4150 and resistance comes in at 426.