Corn Falls Double Digits on Net Higher Production
Corn got the expected yield cut in the monthly WASDE report, but with an increase in harvested acreage and production, offsetting that, futures dropped double digits after the report. December is trading 11 ½ cents in the red so far and is near the low for the day. The cash average price for new crop was unchanged at $4.90/bu.
USDA’s monthly WASDE report had corn yield 1.3 bpa lower to 173.8 bpa. The trade average guess was to see a 173.5 bpa national yield. At the state level, NE was cut by 7 bpa to 177 bpa. Iowa and IL were each trimmed by 3 to 200 and 198 respectively. NASS bumped OH and MO 4 and 2 bpa respectively to 195 and 145. NASS also lifted the corn area by 800k acres to both planted and harvested. That on net had production 23 mbu higher – compared to the nearly 100 mbu cut expected. There were no demand changes made for new crop, thus the carryout was set at 2.221 bbu.
Global corn numbers were for slightly higher output, reflecting the U.S. and Ukraine. Carryout was upped by 3 MMT to 314 MMT. Brazil was loosened via carry-in, and Argentina offset Ukraine’s boost. China’s CASDE estimated 23/24 corn output at 284.9 MMT.
USDA’s weekly Crop Progress report had 97% of the crop in the dough stage, and 82% denting. The weekly update had 34% mature, and 5% harvested as of 9/10. That compares to 4% on average, with TX at 62% harvested and KS at 17%. Condition ratings were 1 point weaker on the Brugler500 Index – at 337.
Sep 23 Corn is at $4.70 1/2, down 3/4 cent,
Nearby Cash is at $4.54 5/8, down 8 3/4 cents,
Dec 23 Corn is at $4.76 3/4, down 9 cents,
Mar 24 Corn is at $4.91 1/4, down 9 cents,
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