USDA report: record soybean crop, large corn crop
Wednesday’s USDA Crop Production Report estimates a record soybean crop and near record corn crop.
University of Illinois ag economist Todd Hubbs tells Brownfield corn prices might have bottomed out.
“I think we might see corn sort of sideways for a while,” he said. “I feel like when we see the futures price in that $3.20 to $3.25 range, it’s sort of a bottom.”
Hubbs said he wouldn’t be surprised if corn acreage fell by October. He said if total corn acres fall and ethanol and feed demand pick up heading into the fall, prices might strengthen.
Hubbs said the soybean market is dependent on large consumption levels with an estimated crop over 53 bushels an acre and Brazil’s 2021 soybean yield estimate over 900 million bushels larger than a year ago.
“If we’re going to see some strong export numbers, we’re going to have to see it early in the marketing year baring crop shortfall in South America,” Hubbs said. “The competition is going to be fierce when we get into their crop year in 2021.”
The marketing year begins September 1st. Hubbs said while he doesn’t expect China to meet the Phase One Trade Deal, he is optimistic about China’s increased buying of U.S. soybeans.