Corn prices have traded in a sideways pattern since mid-October, but are currently in the lower end of the recent range. Soybean prices have trended lower over the past month, with January futures now back near the early October lows.
Corn prices received little support from last week’s USDA Crop Production report containing a lower forecast for the size of the U.S. crop. The U.S. average corn yield is projected at an 8 year low of 146.7 bushels, 1.4 bushels below the October forecast. The potentially positive price impact of that reduction was muted by USDA’s judgment that feed and residual use of corn will only reach 4.6 billion bushels during the current marketing year, 100 million below the October forecast. The forecast is 192 million bushels below the surprisingly small estimate for the previous marketing year. <Read More>
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