Slightly Bearish News, Still Gets a Bounce in Corn; Priced In?Posted 09/13/2019 9:24AM CT |
December corn had an impressive day after a slightly bearish report, closing higher and following through this morning. The USDA report showed yields at 168.2, compared to estimates around 167, but still dropped from August report of 169+. Projected 82 million harvested acres remained unchanged from August but remained higher than estimates of 81.3 million acres. The USDA increased ending stocks by 85 million bushels by lowering ethanol usage by 50 million bushels and exports 25 million bushels. Corn imports were lowered by 5 Million. When you see a market rally on bearish news, it’s a pretty clear sign that these numbers were already priced in and may have been pricing in even more bearish numbers than we received. Last year, the September report raised yield by 5bpa and within 5 days the seasonal lows were put in. Resistance is around 374 and 378 today with support coming in at 360 and then all the way down at 349.