Good Morning,
Markets are lower overnight and this morning as Fridays report becomes the focus for traders. Last nights crop ratings showed corn dropping slightly to 61% G/E while soybeans remained unchanged at 65% G/E. Corn % dent jumped to 79% which is up 16% from last week and 8% higher than the average. This should come as no surprise as this years crop has been ahead on maturity all season.
Fridays report will be the focus for traders as they look to see where production and carryout end up. Current estimates show the 19/20 corn carryout up slightly from the August report(6 million bu) while the 20/21 carryout is down 305 million bu. Yield estimates are guessed at 178.3 bpa which is off from the USDA’s August estimate of 181.8. 2020 US production is estimated at 14.898 billion bu.
While these numbers do appear to be bullish the markets, we are still looking at stocks to use ratio north of 15%. Historically we need this percentage below 10% to see corn near $4/bu!
Take advantage of the recent rally and don’t get caught speculating on how high prices may go. Manage your risk and you will sleep better at night!
If you have old crop corn to move call to find out what options we have for you. In addition to solid prices we have a couple other options that will allow you to finish cleaning out your bins.
Have a Safe Day!
Garry Gard
920-348-6844
ggard@didionmilling.com