by Joel Pudenz of Farmer Co-op
Corn was a nickel lower today. Funds are net short in corn and most feel the feed and residual use estimate from Friday’s report was too strong. The estimate was 100 million bushels stronger than the previous projection; it was the highest projection in six years. Also, ethanol numbers for last week were down 5.6% from the previous week. However, South American corn projections are quietly shrinking which may provide a bit of support in the coming trade sessions.
Beans ended higher again today on a stronger crush number and fears of South American weather. Soybean crush bushels were 1.5 mln bu more than traders were anticipating, putting more pressure on an already slim carryout. South America has been hot and dry but there is rain in the 5-10 day forecast. We’ll have to wait and see if any of the precipitation materializes this weekend.
Corn closed 5.75 lower
Beans closed 11 higher