Corn Ignores Larger Carryout Projections to Close Sharply Higher

Corn futures posted 6 to 9 1/4 cent gains in most contracts on Thursday, with soon to expire July up 13 1/2 cents. USDA raised their old crop corn carryout estimate by 145 mbu to 2.34 bbu, on a cut to several demand categories. They reduced their export projection to 2.1 bbu, down 100 mbu. As expected, they used acreage numbers from the June 28 report, leaving projected yield at 166 bpa. That caused a 195 mbu jump in new crop production to 13.875 bbu. New crop ending stocks were raised by 335 mbu to 2.01 bbu. The world table raised Argentina’s corn crop at 51 MMT. Brazil was left at 101 MMT by USDA, with CONAB bringing their number up another 1.4 to 98.5 MMT. World carryout for 18/19 was up 2.82 MMT to 328.75 MMT, with new crop going opposite of expectations, up 8.4 MMT to 298.82 MMT. The weekly Export Sales report this morning showed an improvement to old crop corn bookings in the week of July 4, at 505,396 MT. That was 6-week high and 25.69% larger than the same week last year.

JUL 19 Corn closed at $4.47 3/4, up 13 1/2 cents,

SEP 19 Corn closed at $4.44 1/4, up 9 1/4 cents,

DEC 19 Corn closed at $4.48, up 8 1/2 cents

MAR 20 Corn closed at $4.54 1/2, up 8 1/4 cents

--provided by Brugler Marketing & Management

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