Corn Projections Up

The latest USDA World Agricultural Supply, Demand and Estimates report raised export corn projections by 100 million bushels. Brian Irey, regional manager of Crossroads Co Op, says the increase was necessary, noting total targets had already been surpassed with 2.65 billion bushels previously set.

“ I don't think it was a huge surprise that they raised exports by 100 million but I think the real question was, is whether they would offset that in the balance sheet, and they did it by reducing residual usage by 75 million bushels, and that took carry out down another 25 million bushels to 1.34 billion bushels, which is not excruciatingly tight, as far as the balance sheet goes, but it is tight. I think in a typical scenario, corn futures at a 1.34 billion bushel carryout would be closer to five and a quarter to five and a half bushels. And we are hovering right around $4 actually, and it's just due to the fact that we have a big crop on the way.”

Irey states that weather almost ideal growing conditions across the Corn Belt, and high yields have contributed to the high amounts of corn and the downward pressure on corn futures for the last month.

That is today's Line on Agriculture report here on the Ag Information Network of the West.