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Corn traders are adjusting to bullish updates to the balance sheet.

Kevin Van Trump, Founder

June 11, 2019

1 Min Read
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The USDA lowered U.S. planted acres by 3 million to 89.8 million. The U.S. average yield estimate was dramatically reduced by 10 bushels per acre from 176 down to 166 per acre. Total U.S. production was lowered from 15.030 billion bushels down to 13.680 billion.

On the flip side, total demand was lowered by 425 million bushels, with feed and residual demand lowered by 300 million and exports lowered by 125 million. Imports were raised by 15 million bushels.

I should also note, the USDA lowered old-crop export demand by 100 million bushels. In total, new-crop ending stocks are trimmed by a whopping 810 million bushels to 1.675 billion, which, if realized, would be the lowest ending stock number since 2013-14. The season-average farm price was raised 50 cents to $3.80 per bushel.

Globally, the USDA adjusted Argentina corn production higher on increased acreage. Canadian corn production was lowered on reductions to both area and yield with planting delays in Ontario. Russian corn production was raised higher based on government data indicating larger-than-expected planted area. Net-net, global corn ending stocks were lowered from 314.17 MMTs last month down to 290.52 MMTs. BULLISH.

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About the Author(s)

Kevin Van Trump

Founder, Farmdirection.com

Kevin is a leading expert in Agricultural marketing and analysis, he also produces an award-winning and world-recognized daily industry Ag wire called "The Van Trump Report." With over 20 years of experience trading professionally at the CME, CBOT and KCBOT, Kevin is able to 'connect-the-dots' and simplify the complex moving parts associated with today's markets in a thought provoking yet easy to read format. With thousands of daily readers in over 40 countries, Kevin has become a sought after source for market direction, timing and macro views associated with the agricultural world. Kevin is a top featured guest on many farm radio programs and business news channels here in the United States. He also speaks internationally to hedge fund managers and industry leading agricultural executives about current market conditions and 'black swan' forecasting. Kevin is currently the acting Chairman of Farm Direction, an international organization assembled to bring the finest and most current agricultural thoughts and strategies directly to the world's top producers. The markets have dramatically changed and Kevin is trying to redefine how those in the agricultural world can better manage their risk and better understand the adversity that lies ahead. 

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