Commodity Daily News

Unreliable Government Crop Reports

An article in Monday's Wall Street Journal shows how unreliable the recent government harvest reports have become. According to the WSJ the US Department of Agriculture monthly forecasts have been less than accurate over the past two years, the most inaccurate in the past 15-years. The government's stockpile report has also come under criticism. The stockpile report shows the amounts of corn which is placed in storage facilities and silos. When the government reports are released they can create large price swings in the commodities markets as the release of the data is considered high impact news. Both hedgers and speculators have begun to question the accuracy of the government's reports as their recent releases have triggered markets' circuit breakers on corn prices over the past 3 years according to the WSJ. Corn prices are currently trading near their recent lows at 584.58. The commodity has support at 581.60 and 571.60 with resistance at 631.00.