Hello Kansas Wheat.
Last Wednesday, the USDA issued a bearish October WASDE update, and prices dropped sharply. Thursday, however, the market rallied impressively, and Friday, importantly…the markets didn’t completely collapse. They didn’t close super strongly either, but the main thing is: they did not completely collapse.
The corn balance sheet was tightened up a freckle, as USA total corn stocks at the end of next August were reduced by 64 million, but still expected to be huge, at 2.32 billion bushels. Four years ago, the USA corn carryout was only 821 million. If the projection is accurate, USA ending corn stocks will have almost tripled in 4 years (+282%)!
Yet…the market did not completely collapse. Dec16 corn shown here, with my “3 weeks of stability” $3.37 black line, and what appears to be a developing uptrend. Giddy up! $4.00 somehow seems not impossible!
(But I think I’d put in sell orders at $3.97. Don’t miss it for 3 cents…)