By Jon Scheve, Superior Feed Ingredients, LLC
Due to the government shutdown this month’s USDA report, arguably one of the top three reports of the year, wasn’t published. There will likely be more market volatility until an impartial number can be released by the government again.
Many in the trade are assuming the national corn yield has decreased up to 1 bushel per acre on corn. Plus, demand is likely to be steady, which would mean a slight carryout reduction. Carryout hasn’t been this tight in 3 years and the stocks-to-use ratio, which is carryout / demand, is at a 4-year low. All of this should mean higher corn values, but the market isn’t trading those type of levels.
Corn verses bean acres
With Nov beans around $9.50 and Dec corn around $4, it’s not clear if as many acres will switch from beans to corn for 2019. Corn needs to buy 3 to 4 million acres from beans and that might not be as likely right now.… Continue readingRead More »