Strong corn demand improved the balance sheet beyond expectations
Strong demand totals for corn provided a bullish surprise from today?s WASDE report. Ethanol use increased 50 million bushels, and corn exports increased 150 million bushels. With no changes to the supply numbers this month, the 200 million bushel increase to corn demand fell straight to the bottom line, lowering the US corn carryout total from 1.938 to 1.738 billion bushels. The 200 million bushel reduction to US carryout was larger than trade expected and helped corn prices move higher following the report release.
We had a 1-Box Sell Signal for corn trigger this morning. Following the favorable USDA supply demand adjustment and the higher price move, we are ready to increase our recommendation on this Sell Signal to 10% of 2024 production. That brings our total recommendation for 2024 corn to 80%.
Roach Ag Corn sales recommendations:
2023 ? 100% sold
2024 ? 80% sold
The USDA made no changes to their monthly supply demand table for US soybeans.
US wheat carryout declined 20 million bushels this month following a 25 million bushel increase to exports (offset by a 5 million increase to imports). The slightly reduced wheat carryout of 795 million bushels was still +14% above last year.
Source: USDA, Reuters