Yesterday, the USDA released their monthly Crop Production report. The government gave us a "bullish" corn number, yet the market was unable to rally. This left some farmers and traders scratching their heads.
Remember that yesterday’s report only provided us with an update of the old crop situation, and had very little to do with the new crop situation (although, this year’s ending stocks are next year’s beginning stocks). Being that this is a futures market, the trade may be more concerned with spring planting conditions, weather, acreage allocation, and ultimately the projections for ending stocks following the 14/15 marketing year. Yesterday’s report was only one piece of the puzzle, a piece that is becoming decreasingly important as we move toward 2014 planting and another growing season in the United States.
Questions? Call Joe at (312) 462-4438.
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