Corn Commentary

John WalshGeneral Commentary, Grains

Commentary: The corn market today was driven by the USDA release. The stocks were estimated at 7.953. This was approx 200 million bu less than estimates. This could indicate an overstatement of last years crop. Or perhaps a realization of corn left in the fields. Whatever the reason, it is material. The problem for corn at present is the acreage at 96.99 mil acres. This is approx 2.5 million acres larger than the estimates. This is a figure, that if realized, is large given the global supply. Given the Covid concerns. In addition, the ethanol slow down. The positives in the corn at present are perhaps a longer term consideration. The corn held the contract low basis May at 332 despite the report. The domestic animal numbers are supportive feeding. Finally, it is possible the acreage will prove overstated, especially if the soy makes further gains. The difficult part of the corn has been the continual attempts at betting on the come. This market will continue to prove difficult, exercise caution. End users could consider this recent break and rejection of the low an opportunity to step in for immediate needs.

Trade Suggestion(s)
NA today
Options –

John J. Walsh
President, Walsh Trading, Inc.

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