March corn was trading up 10 cents a bushel and on contract highs when the USDA released the WASE Report at 11:00 Tuesday morning. About 8 minutes later corn was trading 20 cents below the contract high. That is what you could call volatility. Were the corn numbers that bearish? I guess at least traders and the funds think so!
The USDA did cut corn carryover by 50 million bushel while the average trade guess was a cut of 250 million. So, compared to the trade guess it was bearish. But, how bearish? Even with the current USDA corn carryover projection we have the lowest, or tightest corn carryover in seven years! Plus, the USDA is projecting the corn carryover of 1.5 billion bushel at the end of the marketing year which is August 31, 2021. That is a long time and a lot can happen between now and then.
Morning Market Review for Feb 5, 2021
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atakan/iStock/Getty Images Plus Key an eye on cattle futures, crude oil prices and the calendar as world crawls out of COVID-19 lockdowns.
Commodities continue to twist and turn as the price volatility continues into 2021. As the world crawls out from the coronavirus lockdown in the coming months, demand for certain commodities will grow, with crude oil and beef coming immediately to mind. Attending summer festivals, gathering with friends and traveling to destinations are top of mind for many. Here s a look at three things to watch as February unfolds.
Cattle
Cattle futures have been inching higher over the past month with prices reaching $117.62 in the February contract, and $123.90 in the April contract. The theme of improved demand kept a supportive tone for the rally. Deferred contracts have also had a supportive tone thanks to news of lower placements, and lower cattle supplies available into third quarter. We feel the overall tone of cattle is sup