We kick off the day with Consumer Inflation Expectations and Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., and Crop Progress at 3:00 P.M.

image source

On the Corn Front Friday’s WASDE data the USDA left its 23/24 US corn end stocks forecast unchanged a lower production was offset nearly exactly by lower projected feed and export disappearance. First survey-based yield estimate at 175.1 which is modestly below the 20-Year linear trend, and Ag Resources maintains that fine-tuning actual yield potential will be difficult until combine comes available in September. Changes to yield in August correlate poorly with change in September and beyond, but rarely is yield raised in September bu more than .50-!.0 Bushel Per Acre (BPA) if yield is lowered in August Ad Resources final yield forecast is unchanged at 173 (BPA). This pulls end stocks slightly below 2.0 billion bushels. In the overnight electronic session the December corn is currently trading at 483 ½ which is 3 ¾ cents lower. The trading range has been 492 ¼ to 483 ¼.

On the Ethanol Front the USDA maintained its forecast for 2023-24 corn use in ethanol in its latest World Agriculture and Demand Estimates report, released last Friday. Corn production for 2023-24 is currently expected to be the second highest on record. Despite the expected near-record corn crop, the USDA’s August 2023/24 corn outlook is for reduced supplies, lower domestic use, smaller exports and tighter ending stocks. According to the USDA, projected beginning stocks for 2023-24 are 55 million bushels higher based on a lower use forecast for 2022-23 reflecting reductions in corn used for exports, glucose, dextrose. and starch. There were no trades or open interest in ethanol futures.

More By This Author: