Corn drops ahead of WASDE report

Corn futures are lower so far Wednesday, steady to 2 cents lower in the nearby contracts. Dec hit the highest price since mid-August yesterday. The EIA weekly report showed another round of low production data at 963,000 barrels per day for the week of 10/4, up 5,000 bpd from last week. Ethanol stocks were at a 2-year low at 21.224 million barrels, down 1.995 million barrels from last week. That is the largest wk/wk draw down on record. With corn production estimates expected to be revised 211 mbu lower and a lower carry-in from old crop, analysts project a 508 mbu cut to 19/20 ending stocks to 1.682 bbu. Forecasts still call for hard and soft freezes for many Midwest states, with approximately 8.64% of the total corn crop still exposed to potential frost damage. These potential losses will not be reflected in tomorrow’s WASDE, overall. Ahead of the weekly Export Sales report, analysts estimate 500,000-800,000 MT in 19/20 corn bookings.

DEC 19 Corn is at $3.93 3/4, down 2 cents,

MAR 19 Corn is at $4.04 3/4, down 1 3/4 cents,

MAY 20 Corn is at $4.10, down 1 1/4 cents

JUL 20 Corn is at $4.14, down 1/2 cent

-- provided by Brugler Marketing & Management

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