Bearish USDA Report Adds Insult to Injury

Numbers don't mean much as fundamentals are on hold.

Corn growers could only sit back and watch the turmoil in the markets last week. Hopefully, most were too busy in the field to have to confront the incessant drumbeat of negative news. While corn tried to buck the trend a little last week with a brief rally, Friday's bearish USDA report and stock market chaos quickly ended all that.

The government's numbers weren't all that much of a surprise, though it's tough to figure out which yield models the trend is following this year. The agency's September estimate closely match the yield estimate when figured according to state-by-state crop ratings, which has tended to be less than the figure projected from the overall national yield. Friday's estimate for October followed the national rating, bucking the trend of an overall drift lower in crop ratings.

But these numbers mean little right now, because fundamentals are on hold. Markets remain all about money flow, which for corn remains negative. To read Bryce Knorr's complete weekly corn review, click HERE.

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