USDA Report Could Set Tone for Higher Corn Market Highs
Traders want to know what acreage number the USDA will print in tomorrow's July Crop Production Report.
That report and the Supply/Demand data will be released Thursday at 11:00 am CT.
Here’s this week’s Successful Marketing Newsletter.
The expectations for the monthly July Supply and Demand report are not as clear as they normally are this year. For instance, we could see changes in this report that we normally would not see in a July report. The main one: any adjustment to acres from the late June Planted Acreage report.
Typically, the USDA takes the acres from the late-June report and uses the exact numbers for the monthly July report. The last time it made any major adjustment to this process was in 1993. It is no secret that 1993 and 2019 have many similarities. This is why it would not surprise me to see some adjustments to acres in the report tomorrow (Thursday).
Keep a close eye on the cash corn market. Cash basis levels are reaching or have already hit record-tight levels in many areas. This is a great sign for the bulls. The life of a bull market is often longer when it is being led by a strong cash market.
Is it too early to talk about frost? One reason that cash corn is so strong could be that end users are concerned about finding enough new-crop corn this fall. With the extended window of pollination this year, the threat of an early frost is much more serious.