SIGNAL TERMINATED – CORN LONG – TAKE PROFIT
ORIGINAL TEXT: Corn Long. Last week, the US Department of Agriculture (USDA) cut its estimate of the number of acres harvested in the United States by 550,000 as a result of storm damage. The estimate of ending stocks at the end of the 2020/2021 season has been reduced to 2.503 billion bushels. The estimate of global corn production was reduced more than analysts expected, by 10.67 MMT to 306.79 MMT. The USDA also raised its estimate of global trade in newly harvested corn stocks by 1.37 MMT to 186.03 MMT, of which up to 65% should go to China. Last week, China’s CASDE (similar to the US Wasde report) lowered expectations of domestic corn production by 1.8 MMT, in response to typhoon damage to cornfields and, above all, thanks to unprecedented flooding. The factors mentioned in the eyes of analysts are in favor of the continuing growth of the price of this commodity.
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