Corn Report, 08/12/2016

Friday, August 12, 2016

Another very quiet day for corn as CZ saw only a 3 cent range yesterday ahead of today’s report settling at $3.3425, the fund sold off an estimated 5K contracts. The 5 day range for the majority of Corn Belt now is calling for much more rain and cooler temps as we enter the LH of August. The trade is looking for a 170.6 yield on corn and 2.2 C/O, the overall feeling is that we will see this or higher, which would slam flat price down and from a technical picture if we hit $3.20 that could trigger another leg down. But the USDA has posted surprises before and I would not be shocked to see a yield around 169 as the government does not want to jump in the 170+ yield pool just yet. What I think will be more interesting is what the USDA pegs 16/17 demand at and C/O for 15/16, with the Chinese stating they will have their very large reserves stocks sold by end of 2017 they could cover all there corn needs and even become an exporter. Expecting very little action ahead of 11am, but we will break our 5 cent ranges today and expect volatility right after the report.

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