Markets are softer this morning with corn down 5, what down 6 and soybeans unchanged.
Overall the markets look to start the week off on the right foot ahead of tomorrow’s Stocks and Planting Intentions report. The average guess on corn acreage to be 94.3M acres, soybean acreage at 84.9M acres, and wheat acreage just shy of 45M acres. Corn stocks are expected to fall 5.7% from March 2019 while soybean stocks are projected 17.8% lower than year ago. Both should be considered neutral/friendly.
Corn has been held back by the slide in ethanol production and demand. Nearly 3B gallons of US ethanol production has been taken offline. In the past week alone nearly 1B gallons of capacity has been cut basically reducing the corn grind by about 90M bu. a month. A big problem has been plants finding sufficient storage as consumption of gasoline has plummeted following the US Government stay at home orders. It is highly likely that we could see as much as a third of the industry shutter its doors by the middle of April. A move that would cause about 150M bu. per month loss for the grind.
Have a Safe Day!