News

Crop size questions bringing support to corn prices

Harvest is drawing closer and the uncertainties about corn crop size are playing a role in supporting futures prices. StoneX broker Craig Turner tells Brownfield the recent planted area adjustments from the USDA might not show up in September’s crop numbers, “What will the acres look like? Will the USDA adjust them in September or wait to adjust acres later on? That remains to be seen. I think it’s more likely that the USDA would probably adjust yields a little bit, to the downside.”

Turner says any significant cut in corn yield would lead to tighter ending stocks and demand rationing, “Prices have to go up to a level to ration exports. Before all this inflation and the Ukraine story, 1.2 (to) 1.3 (billion bushel ending stocks) would mean $5 corn, but we don’t trade in a vacuum.”

The USDA’s next set of supply, demand, and production estimates is out September 12^th.