Corn Futures Pause After Big Tuesday Rally

Corn futures are on both sides of UNCH this morning. They posted sharp 7 to 12 1/2 cent gains in most contracts on Tuesday. The monthly WASDE report had a 100 mbu jump in old crop US carryout at 2.195 bbu, mainly due to a reduction in exports. To the surprise of some, USDA slashed their 2019 US corn production number by 1.350 billion to 13.680 bbu. That was 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 bumped Brazilian 2018/19 corn production another 1 MMT 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 plunged 24.19 MMT to 290.52 MMT. About 85% of the world reduction was because of the US cut.

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