Corn outlook suggests lower yield and less demand
A market analyst sees a decline in yield and export demand for this year’s U.S. corn crop.
Naomi Blohm with Total Farm Marketing says she anticipates a larger old crop carryout in USDA’s July supply and demand report.
“Because our exports are still not fantastic and we’re not up to USDA goals and objectives. And that also makes us think that for the new crop, the USDA had increased export potential but the trade is starting to doubt that.”
She tells Brownfield USDA could offset a lower export projection by reducing its yield forecast on dry weather.
“So we have a tight tightrope that we’re watching and balancing right now between what is the supply going to be. We know it’s not a record crop anymore, it’s lost that potential because of this drought. However, we’ve also lost some demand.”
Blohm says China will be leaning more on South America for corn imports until the U.S. harvest gets rolling.