Without Demand in Corn, Lower Yield and Harvest May Not MatterPosted 08/23/2019 8:47AM CT |
Increasing trade wars are a bearish force in the grains this morning, and this is helping spark more long liquidation. Disappointing yield results in the Pro Farmer crop tour helped to support yesterday, with every state coming in lower than the USDA projected on August 12th. Iowa came in at 182.8 compared to the USDA 191 estimate and Illinois came in at 171.2 compared to USDA estimate of 181. Iowa and Illinois are typically two states we can count on raising yield estimates, but if these numbers are accurate from the Pro Farmer crop tour, then I expect to see that 169 avg yield be revised in the next report. Weekly export sales for corn were below average coming in at 119,300 tonnes for the current marketing year and 301,600 for the next marketing year for a total of 420,900 tonnes. As of August 15th, cumulative corn sales stand at just 9% of the USDA forecast for 2019/2020 marketing year vs a 5-year average of 17% at this time. Support is seen at 366.75 and resistance at 374.25.