Weaker corn markets this morning as corn is down 10 in old crop and 5 new crop.
Yesterdays USDA report was a snoozer in my opinion as there was nothing exciting to move the markets. Previously the USDA has used the outlook forum yields in this report and yesterday they did not. The big surprise was using 177 bushels for corn instead of the forum at 181. They used last year’s final yields for corn and beans at 177 and 51.5. This brought the carryout down, otherwise we would have been looking at hefty numbers. The other stuff was mostly in line with average estimates.
Below are the estimates released.
USDA 2021/22 US Carryout (billion bu)
|USDA May||Ave. Est||USDA April|
USDA 2022/23 US Carryout (billion bu)
|USDA May||Ave Est|
It looks like spring wheat is headed towards prevent plant when you look at the forecast. Some of these acres will be canola and some soybeans. After last year’s shortfall of a crop this was not what we wanted. A lot of time highs or lows are made on crop reports and prices return to where they were before the report in the next week. This probably will be the case here again for corn, beans and Chicago wheat.
Have a Safe Day!