Chicago Board of Trade Market News
USDA released acreage and stocks data on Monday that was considered bearish for corn prices. A large increase in soybean acreage and no substantial offsetting reduction in corn acreage caused corn futures to be dragged down by sinking soybean contracts. The fact that corn stocks of 3.854 billion bushels were above the average estimate of 3.724 billion bushels also offered no buoyancy and buying interest dissolved as the probabilities of eventually being able to purchase at lower prices in the future increased.
A pool of traders went into Monday’s report holding long positions and it is likely to take four to five days of selling before those positions are readjusted enough to allow even a limited bounce. Feed grain end-users who had extended some coverage prior to the data release on Monday are unlikely to extend any more coverage at this time. Rather, they are expected to purchase on an as-needed basis going into harvest.
Condition ratings on Monday afternoon implied that excessive rains in portions of the Corn Belt had no major impact on the average conditions for U.S. corn. Continued stability of favorable crop conditions increasingly implies that the bottom in corn contract prices may still be a ways off. The outlook for feed grain prices has become more bearish after receiving the combination of additional USDA data on Monday