LUBBOCK, TEXAS (RFD-TV) — Corn futures found buyers after an initially sharp selloff following USDA’s October supply and demand report, offering some support after larger yield and stocks estimates pressured producer margins.
Frontier Futures broker Adam Knosalla told RFD-TV that USDA’s higher corn estimates reflected more harvest information replacing earlier trend-based assumptions. He said the timing was especially difficult with crop insurance pricing underway and diesel costs remaining high.
Knosalla said futures briefly traded limit-down after the report but recovered to close about 10 cents above the session low. He said that recovery showed buyers were willing to step into the market despite the bearish supply revisions.
USDA also raised projected corn exports by 25 million bushels. Knosalla said that increase suggests the agency expects export demand to improve even though the current pace has been relatively slow.
Producers will now watch whether buying interest can continue as harvest advances and larger supplies compete with high operating costs and post-harvest marketing pressure.
