By Jon Scheve, Superior Feed Ingredients, LLC
Some in the trade are questioning the national corn yield after the USDA lowered it this week. Early field reports I am seeing across the country would suggest the yield is better than some are expecting. In 8 of the last 22 years, the national yield average went up from the September report to the January report, so there is a chance the national yield can still increase.
Corn export demand, on the other hand, is lousy. The USDA has estimated it should be running more than 20% higher at this point in the marketing year verses last season, but it is currently running nearly 10% behind last year’s pace. This makes a sustained corn rally difficult even if the yield does get smaller in future reports.
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