Good Morning,

USDA Secretary Perdue spoke this morning about their new initiative meant to increase US farm productivity while reducing agriculture’s impact on the environment. The USDA’s goal is to align resources to help reduce food waste by 50% and cut nutrient runoff by 30%.

The USDA’s Chief Economist also spoke this morning touching on trade and just what the USDA envisions for its 2020 WASDE forecast on acres, yield and stocks. Last year’s planting difficulties resulted in a 13M fewer soybean acres, equivalent to more than 600M bushels. Lower carry-in supplies, support an increase in soybean area to 85M acres. Corn area is expected to rise 4.3M acres to 94M following last year’s prevented plantings, supported by new crop prices that are relatively favorable to corn.
These initial ideas indicate the expectation that we see a rebound in acreage to 224M after being significantly impacted by flood last year. This is still moderately below projections provided from 2015-2018. Corn at 94M, while up significantly from last year, it was pretty much in line with expectations. 85M acres of beans was also in line with the average guess.
The 2020/21 corn average farm price expectation was put at $3.60/bushel and compares to 2019/20’s estimated $3.85. USDA sees the 2020/21 U.S. average farm price for soybeans at $8.80/bushel vs an estimated $8.75 for 2019/20.
Corn and soybeans are both trading 1-2 lower to start the day.

Have a Safe Day!

Garry Gard