By Doug Tenney, Leist Mercantile
On May 12, USDA will publish their first estimate of supply and demand tables for 2020-2021 crops. With the March 31 planting intentions report estimating 2020 corn acres at 97 million acres, it is easy to assume ending stocks for the new crop year at a number not seen for several years. Ending stocks for Aug. 31, 2021 will reach at least 3 billion bushels in coming months. Some are already indicating it could reach 3.5 billion bushels or even higher with trend line yields and higher acres. Demand destruction seen in recent weeks further increases ending stocks as well.
U.S. corn acres for 2020 were estimated on March 31 to reach 97 million acres. Since then, prices for new crop December 2020 corn reached the $3.40 mark last month. Prices fell from the $3.88 average seen during the month of February 2020 which is when crop insurance revenue prices were calculated for corn.… Continue readingRead More »