Same Old Song and Dance in CornPosted 09/06/2019 8:23AM CT |
December corn briefly traded up to 362 early yesterday, before a negative ethanol production number reminded traders there is no demand right now. Ethanol production for the week ending Aug 30th, was down 2.4% vs. last week and down 6.8% vs last year. Corn use has already met this year’s USDA estimate of 5.425 billion bushels. Stocks were 23.801 million bushels. This is up 3.5% vs last week and 4.8% vs last year. The global grains production for the 2019-2020 season is seen at 2.7 million tonnes, up .9% from prior forecast and 2.1% higher than last year according to UN’s food and ag organization. Some firms see the 2019-2020 Brazilian summer corn crop at 26.3 million tonnes, roughly the same as last year. Planted area is also seen as basically unchanged at 4.9 million hactares. Corn support comes in at 352 and resistance at 365. A close over 376 is needed to wake up the bulls.