Corn Surprise

USDA has released its December world agricultural supply and demand estimates report, and a corn baseline projections came as a surprise to many in the industry. Crossroads. Co Op Regional Manager, Brian Irey joins us to break down what the report says about corn demand and exports and what it could mean. Moving forward.

“We've now increased corn demand 970 million bushels since July, which is just absolutely unprecedented. I don't really understand where the USDA is going with this thing, but they are clearly struggling with how to get rid of a 16.75 billion bushel corn crop.

Irey says the corn crop was nearly ideal through most of the season, with some rust showing up in Illinois late in August, but not enough to significantly affect yields. We are still today looking at 186 bushels per acre yield on the crop.”

He says the only place that USDA could increase any type of demand in a report was for exports.

“Because they already have food, seed, and residual over-inflated. They have feed over-inflated, and they have ethanol grind over-inflated. But it really appears as if maybe we aren't headed in January for another increase in yield.”

And Brian Irey with Crossroads Co Op.