Corn Up Double Digits as USDA Cuts 2019 Production Projection

Corn futures are posting 12 to 14 cent gains in most contracts at midday. The monthly WASDE report saw a 100 mbu jump to old crop US carryout at 2.195 bbu, mainly due to a reduction to exports. To the surprise of some, USDA actually slashed their 2019 US corn production number by 1.350 billion to 13.680 bbu. That was mainly driven by a 10 bpa drop to projected yield at 166 bpa, with planted acreage down 3 million acres to 89.8 million. That caused 19/20 ending stocks to drop 810 mbu to 1.675 bbu. On the world side, USDA gave Brazil 18/19 corn production another boost, up 1 to 101 MMT, while CONAB increased their number by 1.76 to 97.01 MMT. USDA’s old crop world stocks projection was down just 0.56 to 325.38 MMT, while new crop was shifted 24.19 MMT lower at 290.52 MMT. On Monday. NASS showed that 83% of the US corn crop was planted as of June 9, still lagging the 99% average, with emergence pegged at 62%. Initial corn ratings were at 59% gd/ex, with the Brugler500 index at 355.

Jul 19 Corn is at $4.29 1/4, up 13 1/2 cents,

Sep 19 Corn is at $4.37 1/4, up 13 1/4 cents,

Dec 19 Corn is at $4.48, up 13 1/2 cents

Mar 20 Corn is at $4.56 1/2, up 13 cents

--provided by Brugler Marketing & Management




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