By Jon Scheve, Superior Feed Ingredients, LLC
The USDA increased the export demand pace for corn. Should the U.S. produce a trend line corn yield of 174 bushels per acre this year, then carryout would drop from the current level of 2.1 billion to just below 1.6 billion by next summer. If that were to happen, then corn is undervalued.
However, the nearly perfect growing conditions across 90% of the Corn Belt is keeping prices down at the moment. The corn crop is setting itself up for a 180-bushel per acre national average estimate, which would mean 500 million more bushels and a carryout over 2 billion. If that would occur then Dec corn is overvalued today.
On June 29 we will learn if the U.S. farmers planted more corn acres than estimated in the spring by the USDA. Expectations are that an increase of a half million to 1 million additional acres might have been planted.… Continue readingRead More »