Corn bulls had gas thrown on the fire Tuesday as the USDA released a very bullish crop production report. The big market driver was a 3.8 bu cut in final yield from the November report; this was the biggest Nov - Jan cut in yield ever!
The USDA countered the decreased production by lowering demand for exports, feed, & ethanol for a carryout of 1.55 billion bushels. The bean balance sheet came in about as expected with carryout down 35 mill bushels to 140 million.
Funds continue to build on their record long position with Argentina having some drought stress. The USDA did lower Argentina corn production 1.5 MMT down to 47.5 MMT and bean production down 1.6 MMT to 48.4.
Selling has been strong as we broke above $5 cash this week. We have also seen a pickup in new crop sales as well for both corn and beans.
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