Corn futures finished up again on Thursday, settling at 6 3/4 cents, or 1.8%, higher at $3.77 1/2.
December corn was up seven cents or 1.8 percent, at $3.96 1/4 a bushel.
Much of this is borrowed from concerns over wheat, which could yield less than projected, which would increase demand for animal feed, raising prices.
Expectations that the U.S. Department of Agriculture released on Friday will show a tighter corn balance sheet has increased interest in the corn market.
Showing posts with label USDA Corn Planting Report. Show all posts
Showing posts with label USDA Corn Planting Report. Show all posts
Thursday, July 8, 2010
Tuesday, October 28, 2008
USDA Corrects Corn Production, Will Lift Prices
Stronger cash corn prices are being predicted as a result of unprecedented corrections to an official crop report Tuesday by the U.S. Department of Agriculture.
The report said that U.S. farmers will probably harvest about 1 million acres less of corn than they said in the last report, with soybeans also being much less than the previous report.
What this effectively does is cut expected production by close to 1.5 percent than what was projected on October 10.
"Corn production is forecast at 12.033 billion bushels, down 167 million from the Oct. 10 forecast," said the USDA. "Soybean production is forecast at 2.938 billion bushels, up slightly from the September forecast, and up 10% from last year. If realized, this will be the fourth largest production on record."
As a result of the corrections, corn will ending stocks of about 1.088 billion bushels, a drop of 6 percent. That should push corn prices up a little going ahead.
With the new statistics, expectations are the average bushel of corn will increase by about 5 cents to $4.25 to $5.25 a bushel.
For only the third time since 1980, over 60 percent of the corn crop in the U.S. still has to be picked as of October 26.
The report said that U.S. farmers will probably harvest about 1 million acres less of corn than they said in the last report, with soybeans also being much less than the previous report.
What this effectively does is cut expected production by close to 1.5 percent than what was projected on October 10.
"Corn production is forecast at 12.033 billion bushels, down 167 million from the Oct. 10 forecast," said the USDA. "Soybean production is forecast at 2.938 billion bushels, up slightly from the September forecast, and up 10% from last year. If realized, this will be the fourth largest production on record."
As a result of the corrections, corn will ending stocks of about 1.088 billion bushels, a drop of 6 percent. That should push corn prices up a little going ahead.
With the new statistics, expectations are the average bushel of corn will increase by about 5 cents to $4.25 to $5.25 a bushel.
For only the third time since 1980, over 60 percent of the corn crop in the U.S. still has to be picked as of October 26.
Tuesday, October 14, 2008
Corn Futures Increase from News on Initial Government Injection of Capital into Banks
The emotional boost given by the announced plan of the U.S. government to take $250 billion of the $700 billion bailout and inject it into "healthy" U.S. banks, has caused many commodities to rise over the last couple days, but that will be short lived.
For corn, it partook in the overall boost by increasing by 6.75 cents for December delivery to reach $4.18 a bushel on the Chicago Board of Trade. Earlier in the day it was higher at $4.29 a bushel.
So far this year corn maturity has dropped significantly from last year, as a recent report from the USDA says, where as of October 5 it was only as 73 percent maturity, in contrast to last year during the same period where it was at 95 percent. Later today the U.S. Department of Agriculture will release their weekly crop report.
For corn, it partook in the overall boost by increasing by 6.75 cents for December delivery to reach $4.18 a bushel on the Chicago Board of Trade. Earlier in the day it was higher at $4.29 a bushel.
So far this year corn maturity has dropped significantly from last year, as a recent report from the USDA says, where as of October 5 it was only as 73 percent maturity, in contrast to last year during the same period where it was at 95 percent. Later today the U.S. Department of Agriculture will release their weekly crop report.
Friday, October 10, 2008
USDA Raises Monthly Corn Forecast
The monthly forecast by the U.S. Department of Agriculture on Friday reported corn production for the year could be a much higher 12.2 billion bushels, a significant increase over September's projection of 12.1 billion bushels.
While wetter weather has a strong impact on production, the resultant success will probably put more downward pressure on corn prices, as the agency revised its season-average per bushel to a range of $4.20 to $5.20. That's a drop of 80 cent from September's estimate.
At the end of Thursday's session on the Chicago Board of Trade, corn for December delivery ended at around $4.38 a bushel.
While wetter weather has a strong impact on production, the resultant success will probably put more downward pressure on corn prices, as the agency revised its season-average per bushel to a range of $4.20 to $5.20. That's a drop of 80 cent from September's estimate.
At the end of Thursday's session on the Chicago Board of Trade, corn for December delivery ended at around $4.38 a bushel.
Wednesday, March 26, 2008
Corn Futures Will Continue to Rise because of Several Factors
Corn futures on the Chicago Board of Trade finished higher on Wednesday, with a number of factors continuing to contribute to its rise.
Future contracts for May increased to $5.52 1/4, up by 7 1/2 cents; July contracts finished at $5.65, and increase of 8 cents; December contracts ended at $5.68 1/2, an increase of 8 3/4 cents.
While speculators played some role in the increase, as consumer confidence reports and the dollar starting to drop again have brought them back to commodities, after their exodus last week.
Other drivers that should guarantee continuing price increases are the midwest corn fields which are being held back from being planted because of wet fields; and forecasts are it'll continue getting rain over the next week, further slowing the planting season - especially in the southeastern portion.
Overall consensus by analysts from a Dow Jones Newswires' survey are the number of acres planted in corn this year will fall by 6.2 million acres to 97.387 million. That's down from the 93.600 million acres planted in 2007.
Other bad weather news is the the northern half of the midwest could be hit with up to 2 inches of rain, which will cause them to delay corn planting, making the harvest even further off.
If this keeps on much longer, the price of corn will probably continue to go up, as there could be anticipated times of low supply.
Of course the ethanol issue continues to rear its ugly head as the battle for corn, acreage and planting other crops like wheat continues on, reeking havoc in American agriculture and the price of food.
Future contracts for May increased to $5.52 1/4, up by 7 1/2 cents; July contracts finished at $5.65, and increase of 8 cents; December contracts ended at $5.68 1/2, an increase of 8 3/4 cents.
While speculators played some role in the increase, as consumer confidence reports and the dollar starting to drop again have brought them back to commodities, after their exodus last week.
Other drivers that should guarantee continuing price increases are the midwest corn fields which are being held back from being planted because of wet fields; and forecasts are it'll continue getting rain over the next week, further slowing the planting season - especially in the southeastern portion.
Overall consensus by analysts from a Dow Jones Newswires' survey are the number of acres planted in corn this year will fall by 6.2 million acres to 97.387 million. That's down from the 93.600 million acres planted in 2007.
Other bad weather news is the the northern half of the midwest could be hit with up to 2 inches of rain, which will cause them to delay corn planting, making the harvest even further off.
If this keeps on much longer, the price of corn will probably continue to go up, as there could be anticipated times of low supply.
Of course the ethanol issue continues to rear its ugly head as the battle for corn, acreage and planting other crops like wheat continues on, reeking havoc in American agriculture and the price of food.
Thursday, March 20, 2008
USDA's Prospective Plantings Report for Corn to be Released Soon
Those watching the commodity corn market should remember that the USDA's Prospective Plantings report is scheduled to be released on March 31.
History has shown that many times the futures market makes a lot of swings leading up to the release of the report; with speculation and rumors generating the swings.
On the other hand the elevator markets are usually less volatile, and trade on the realities of supply and demand rather than the unknown.
In other words, we need to be cautious during this time, and resist the temptation to follow the speculators.
History has shown that many times the futures market makes a lot of swings leading up to the release of the report; with speculation and rumors generating the swings.
On the other hand the elevator markets are usually less volatile, and trade on the realities of supply and demand rather than the unknown.
In other words, we need to be cautious during this time, and resist the temptation to follow the speculators.
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