By Jon Scheve, Superior Feed Ingredients, LLC
Last week, the USDA decreased the expected national corn yield more than what the trade was expecting. There have only been 4 years in the last 15 when the estimated final yield was higher in the January report versus August. None of those years had weather conditions like what we have witnessed this year. Some in the trade still expect yield estimates to continue falling through harvest. However, even at current levels it is positive for prices longer term.
The USDA decreased feed and export demand to help offset the lower yield, but corn demand should remain strong through the next marketing year. This is because Brazil’s yield estimates were also decreased this month and the global wheat stock estimates were also scaled back.
The drop in Brazil’s yield means that corn exports that normally would come from the Southern Hemisphere may have to be shifted to the United States.… Continue readingRead More »