This is a sample entry from John Payne’s newsletter, This Week in Grain, published on Thursday July 07, 2016.
Conab (Brazil bean counters) came out this morning and dropped bit of a bomb shell on the market. They cut corn production from an expected 76.2 MMT (2.8 billion bushels) to 69.1 MMT(2.5 billion bushels) because of poor second crop production. This is going to put the onus on the US to make that production back. I’ll try to gather more thoughts as the day goes on for tomorrow, if anyone wants to talk about it give me a shout.
I think we could see corn easily run through 3.50 and push into the upper 3.60’s. Bottom line, the US will be leaned on a little more to meet world demand, but the good news for bears is the US will probably be able to grow it. Next week’s USDA report just got a little more interesting.
FYI, they left beans untouched around 95 MMT, that’s much lower than what the trade thought was going to be produced this winter when expectations were above 100 mmt.
USDA exports will be released tomorrow.
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