Morning Market Review by Bryce Knorr
Futures are mixed this morning, but Monday’s sharp sell-off so far isn’t attracting serious follow-through weakness. Today’s stability could be the calm before the storm, with Wednesday’s USDA report for September a major market milestone.
Corn is higher today, recovering a little of Monday’s losses, which took prices below chart support to a test of the 50-day moving average for December futures.
Traders expect USDA to cut its forecast of 2012 crop production by 400 million bushels, with a slight reduction in new crop carryout as well. USDA Monday reported 15% of the crop harvested, a little below expectations. Nationwide ratings were unchanged, but statewide conditions approved about a half bushel per acre to 117.6 bpa, in line with the Farm Futures estimate of the crop.