Export Troubles Woe on Corn Futures

It appears even as a smaller domestic corn harvest due to excess rain, corn inventories here in the US will advance more than the government forecast last month because of slimmer exports and feed use.  Corn futures have sank 39% from a record high of $8.49 per bushel almost one year ago.

The USDA said today corn reserves will total nearly 2B bushels by August 31st next year, which is up from 1.949B bushels projected last month.  Exports of corn are forecasted down to 1.25B bushels from 1.3B projected last month and feed and domestic consumption down a mere 500,000 thousand bushels from June’s estimate.
           
Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, had this to say regarding the current corn futures situation, Forecasts for export demand for corn and domestic usage of corn for animal feed, was cut today by the USDA. This could result in a surplus of corn domestically and drive futures prices lower.”

The trend for corn futures remains down with no bottom yet in sight.  I will be looking for short signals after the rally that took place following today’s USDA Crop Production report.

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