Corn Futures—Corn futures in the December contract is currently trading lower by 2 cents at 4.12 a bushel after experiencing a wild trading session yesterday rallying sharply off of the $4 level as the crop progress report was released showing that 57% is in good/excellent condition which was down 1 point from the prior week.
One of the most highly anticipated crop reports will be released on August 12th as there are huge variances on what the final crop production numbers will be as a Farm Futures survey shows estimated corn planted acreage at 83.5 million acres for 2019, with yield projected at 167.2 bpa and production at 12.723 bbu while IEG Vantage pegged yield at 167.8, with production at 13.857 bbu. I have been recommending a bullish position from around the 4.00 level and if you took that trade continue to place the stop loss at the contract low of 3.63 as an exit strategy.
Nobody really knows what this crop report will state as there is so much uncertainty, but that report will certainly send some clarity into this market and dictate short-term price action, however I do believe there was significant damage as I would be surprised if the crop production number came near 14 billion bushels so stay long.
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