Wednesday, June 30, 2010

"Surprising Corn Numbers"

A couple days ago I was wondering if there were any corn farmers who could make money with $3.00 corn.
Although a bushel is up 4 1/4 pennies today, the decline has been relentless. At 348.250 we're getting close to that three buck line.
From DTN's Market Matters blog: 
Corn, 87.87 million acres, soybeans, 78.87 million acres -- each up 2 percent from last year, but the corn number is well below most trade guesses, and the soybean acreage is at the high end.
And in the stocks report, USDA put June 1 corn stocks at 4.310 billion bushels, also below the low end of trade guesses. Soybean stocks are at 571 million bushels, below most traders' guesses, and wheat stocks were 973 m bu, about 23 m bu more than the highest estimate.
Given the assault the market has made on corn over the last couple of weeks, it will be interesting to see how traders adjust to this new set of numbers.