Tidbits, Corn Spread, Brazil Crops, Wheat Tour, Broilers & Ethanol 5/14/25
- Wright team
- 17 hours ago
- 4 min read
Tidbits
From 19 February to 28 April, July corn lost 10¢ versus December corn. From 28 April to 13 May, the spread of July corn to December lost another 31½ cents! Yesterday, July corn gained 3½¢ on December corn, which is a huge change in direction.
From harvest until deep into the spring, when old crop prices lose on new crop prices, that is a bearish indicator, even in an up market. The opposite is also true. We should have shown more respect for what that spread was telling us about the market outlook the past three months. We fixated on old crop corn carryover reduced 195 million bushels in January due to a 4 bushel per acre yield cut on the 2024 crop and strong exports all winter which made USDA increase old crop corn exports another 150 million bushels on the last two S&D reports. To cap it off, the USDA reported on 31 March the 2025 U.S. corn acres would be the largest in 12 years! How can old crop futures lose 41½¢ on new crop corn with those kind of numbers?
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