Corn Tumbles From 7-1/2 Year High As USDA Projects Supply Woes
Chicago Board of Trade corn futures have faded 7-1/2 year highs after the U.S. Department of Agriculture (USDA) projected supplies of the grain would be well above market expectations.
“Corn led the sell-off as the USDA only minimally trimmed its U.S. end-of-season stocks outlook and raised its export forecast by less than many traders had anticipated following record-large sales to China,” according to Reuters.
“The surprise in the report is that the government only took (U.S. corn) exports up 50 million bushels despite the fact that we had huge Chinese buying,” said Don Roose, president of U.S. Commodities.
USDA projected corn ending stocks for 2020/21 were around 1.502 billion bushels. Analysts surveyed by Reuters estimated corn ending stocks of 1.392 billion.
Corn futures have risen 87% from August to $5.74-1/4 per bushel on strong Chinese demand and unfavorable weather in South America.
The question now remains with fundamentals deteriorating, tilting to supply woes, can corn prices hold their gains? If not, a correction is ahead.
Wed, 02/10/2021 – 15:25