Commodity Chart Of The Day
Today's USDA report was supportive for maize with prices higher by nearly 5%, trading up to their 50 day MA. If you read yesterday's post, I did hint that on a bullish number, this would be the next stop. Aggressive traders can reestablish bullish trades on pullbacks that hold $7.55/bushel, in my opinion, in December. It was not the supply that surprised today but rather the demand numbers, and prices may need to trade higher from here to ration.
I had previously thought we had one more leg down to establish harvest lows, but after today's report, the low established just above $7/bushel in recent weeks may prove to be the harvest lows …stay tuned. I've shifted from bearish to neutral, and if we can hold onto today's gains, I will become more bullish.
Corn yield 122 bpa (122.84 bpa expected, range 120-127)
Corn production 10.706 bbu (10.601 bbu expected)
2012/13 corn stocks 619 mbu (648 mbu expected, 733 last month)
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.