Cash Strategist 5-24-2023
The long-awaited May supply and demand data was mostly as expected for corn production. The average U.S. corn yield was equal to the USDA's Ag Outlook Forum figure of 181.5 bushels per acre for a crop projection of 15.265 billion bushels. When this production is combined with old crop ending stocks of 1.417 billion bushels, it will give the U.S. a new crop starting inventory of 16.7 billion bushels, the highest volume since 2017-2018.
The only change to old crop balance sheets was a 75 million bushel decline in exports. While new crop corn production forecasts are up, so are demand expectations. Total new crop demand is estimated to total 14.485 billion bushels, up 755 million bushels from old crop. Feed and residual are a large part of this, with added demand of 375 million bushels. Exports are also...
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