Grain News – Price Increase in Corn Could Uncover Opportunities
On Tuesday, the USDA showed us an aggressive acreage and yield revision on corn, and Wednesday’s weather forecast turned more wet in the Eastern Corn belt. USDA lowered 2019/20 U.S. Corn ending stocks by 810 million bushels from last month to 1.675 billion bushels. The USDA dropped yield by 10 bpa to 166. The carryout number is a 24% decline from this year’s 2.195 billion bushels and the lowest since 2013/14 at 1.232 billion bushels. All the news was in corn as the USDA still had U.S. soybean carryout over 1 billion bushels, leaving acreage and yield unchanged from the last report. Yesterday, I was able to drive the entire state of Illinois to witness firsthand a crop that was well behind, filled with holes or not planted at all, as work was still getting done. It appeared the fight was not over, maybe the price action encouraged a few folks back in the seats or maybe this was the plan all along, but it did make me feel much better about the crop I have been able to see in most of Wisconsin. Surely, this will be the story of the crop year.
As you are reading grain wires and headlines, it is of upmost importance to still work on your marketing plan. Maybe your production number needs to change and with that, some price targets because contingencies and adjustments are part of the plan. Some years it goes perfectly as planned, some years we change price targets lower and production higher. This year, we are likely lowering production in the marketing plan and increasing price targets. Hopefully this price increase in corn can start uncovering opportunities for crop years to come.