Corn Futures

Discussion in 'Commodity Futures' started by vanzandt, Aug 31, 2024.

  1. long

    long

    NASS and the private annual crop tours (pro farmer and StoneX) have been confirming record yields over the past few weeks. My own travels around the Midwest leads me to believe that we have a large crop coming even if it doesn’t break the previous record it won’t be far from it. I don’t know much about Amish production levels but it won’t make a dent in supply if they have a total crop failure.
     
    #21     Sep 7, 2024
    BKR88 likes this.
  2. vanzandt

    vanzandt

    Yeah you may be right, but these weren't Amish fields, pretty sure, they were just on the way there. That's why I threw that in. But I do think some areas didn't get a lot of July/August rain. And it was hot.
     
    #22     Sep 7, 2024
    long likes this.
  3. long

    long

    We’ll find out in January
     
    #23     Sep 7, 2024
  4. BKR88

    BKR88



     
    #24     Sep 12, 2024
  5. vanzandt

    vanzandt

    Dumb question. Why do they quote some futures like this, not using a decimal point?

    Corn
    Futures and Options
    Globex Code
    ZCZ4
    Last
    410'2
    Change
    +4'2 (+1.05%)
     
    #25     Sep 13, 2024
  6. tiddlywinks

    tiddlywinks

    The number past the tick mark represents eighths of one cent. In the case of corn, that is eighths of one cent per BUSHEL. The confusion is the fact corn (and other ag) contracts trade in 1/4 cent increments, but are quoted in eighths.

    410'0 = 4.10
    410'2 = 4.1025
    410'4 = 4.1050
    410'6 = 4.1075

    I used to know the history of why the difference in trade vs quote. But I don't remember right now! I recall something to do with the decimal places needed for the dissemination of quotes?!?!
     
    Last edited: Sep 13, 2024
    #26     Sep 13, 2024
    vanzandt likes this.
  7. vanzandt

    vanzandt

    Told ya it was dry. Apparently in Brazil too.


    Funds cover more CBOT grain shorts amid US, Brazil dryness
    By Karen Braun
    September 16, 202411:30 AM UTCUpdated ago



    CommentaryBy Karen Braun
    [​IMG]
    Ships and warehouses containing grains and sugar are seen at Santos port, in Santos, Brazil May 25, 2023. REUTERS/Amanda Perobelli/File Photo Purchase Licensing Rights
    , opens new tab

    NAPERVILLE, Illinois, Sept 15 (Reuters) - Speculators last week bailed on short positions in Chicago grains and oilseeds for a second consecutive week as U.S. crops are finishing under a dry spell and drought is spreading throughout Brazil’s farmlands.
    Investors are still solidly bearish across corn, soybean and wheat markets, but their corn views are no longer historic.
    In the week ended Sept. 10, money managers cut their net short position in CBOT corn futures and options to 132,134 contracts from 176,211 a week earlier. Most of that move stemmed from short covering, but funds added gross longs for a third consecutive week.

    From late June to early September, funds’ net corn short was the largest ever for the time of year. Last week’s reduction brought the position nearly even with the same dates in 2023 and 2019, though at this point in those years, investors had just come off the long side and were adding shorts.
     
    #27     Sep 18, 2024
    BKR88 likes this.
  8. vanzandt

    vanzandt

    August is a big month for corn across the Midwest.

    upload_2024-9-17_23-28-58.jpeg
    I knew it didn't look right. But... if the USDA say's we're gonna have a bumper crop... they know better than I do I guess.

    Do they revise up or down like the economic data we always get?

    Inquiring minds...
     
    #28     Sep 18, 2024
    zghorner and BKR88 like this.
  9. BKR88

    BKR88

    Yes, Brazil is very dry but they're just in planting season so IF they get a change in the weather pattern there's still plenty time to produce a good crop.
    Brazil weather is what's putting a bottom in prices IMO.

    July is the most important month for rain for corn in the midwest.
    The dry august took a few bushels off the top but still very likely to produce a record corn crop this year.

     
    #29     Sep 18, 2024
    long likes this.
  10. BKR88

    BKR88