By Jon Scheve, Superior Feed Ingredients, LLC
The Jan. 10 USDA report wasn’t as big of a market mover as some expected. Corn and beans closed only up 2 cents after the report. Following are some highlights.
Planted and harvested acres
A surprise was the USDA reducing planted and harvested acres slightly for 2018 as well as 2019. However, the difference in harvested acres between the 2 years was still less than a 1-million-acre reduction.
Probably a bigger surprise was that yields were increased by 1 bushel per acre instead of a slight reduction. The USDA announced they will resurvey 5 northern states in the spring, it seems unlikely the national yield average would increase from those unharvested acres. Therefore, a carryout reduction is still possible later this year.
After taking into considering the acre reduction for both crop years, there was only a slight increase of 50 million bushels in total production with the surprise yield increase.… Continue readingRead More »