The June WASDE was bullish for corn as the USDA did not change yield numbers but they did increase demand and lower global production. The market has been selling corn lower due to expectations of higher yields and concerns over US trade policy with foreign ag market customers.
The main takeaway we had after today’s report is how volatile corn could be if we have real weather issues this summer. If we have a 180 bpa national yield we could see new crop ending stocks around 2.0 billion. If we have lower than a 174 trend line yield we could see ending stocks 1.4 billion or lower and the need for price rationing. Stay tuned!!!
While the podcast does not have specific actionable trading recommendations, we do publish them in Turner’s Take Market Alert for spec traders and Turner’s Take Ag Marketing for hedgers. Want to know what to look for in the commodity futures markets? Take a listen to Turner’s Take podcast!
Craig Turner – Commodity Futures Broker
Turner’s Take Ag Marketing http://www.turnerstakeag.com
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Turner’s Take Ag Marketing | 2018 Corn Outlook - Turner’s Take Ag Marketing sees 2018 corn prices having a possible range from $3.15 to $4.50 given various acreage, supply and demand scenarios, with an end of season target price of $3.70. Find out more about how we determine the range of prices, our suggested marketing strategies, and our 2018 target prices.
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