Corn supplies falling domestically and globally
A market analyst says the US will have to ration demand for corn this marketing year, based on USDA’s recent supply and demand report.
“We are going to be down about 1 billion bushels in total supply from a year ago. That’s a hit…a huge hit.”
Randy Mittelstaedt with RJ O’Brien says the US will need to take 600 million to 700 million bushels out of demand this marketing year compared to last marketing year, just to keep US ending stocks at minimum pipeline levels.
“We are clearly going to have to reduce feed usage in the US in 2022-2023 for corn. Probably on the order of 400-500 million bushels.”
Coupled with the lack of corn coming from Ukraine and drought in the European Union, he says the global corn picture is one to keep an eye on.
“The corn situation, quite frankly, is shaping up to be an extremely difficult one for this year.”
He says while production numbers could change as the crop is harvested, corn is far enough along that yields are not likely to bounce back enough to fill the gap.
Mittelstaedt made his comments during a webinar hosted by the US Soybean Export Council.