News

Possible USDA estimated corn acreage drop coming

An ag economist is expecting slight to moderate adjustments by USDA in its global supply and demand report Friday.

The University of Missouri’s Ben Brown says new crop corn acreage estimates will likely be the key for this month’s USDA supply and demand report…

“Trade is interested to see [if] we see another revision,” Brown said. “Potentially this time in acreage given the challenges of planting in the upper plains. By now corn planting seems to be relatively finished; we might see some revisions there.”

He tells Brownfield he’s not expecting a lot of changes on old crop estimates.

“Maybe building some soybeans ending stock on some smaller soybean crush values that, kind of, build those ending stocks for old crop but not by much,” he said.

And Brown said there could be a downward move for ethanol use expectations.

“High gasoline prices this summer are going to tailor off some of our gasoline consumption,” he said. “Therfore, I think we could see USDA revise down the old crop corn for ethanol use estimate as well as maybe for next year [too].”

Brown said new crop wheat production expectations could also drop on lower spring wheat acreage and a slight increase in corn use for feed with wheat prices over $10.

Brown made his comments during Brownfield’s recent Weekly Commodity Market Update.