October 14

10/14 - USDA corn crop estimates keep inching lower but are still higher than what private analysts were anticipating following the devastating spring floods in the Midwest. In Thursday’s WASDE report, the USDA cut its corn production forecast, but it also raised yield per acre and lowered projected corn usage for ethanol and exports. Corn prices plunged (post report) on Thursday, but then recovered (to $3.97/bushel) on Friday in response to a limited trade agreement between the U.S. and China. Thursday’s WASDE was bullish for prices across the soybean complex. The USDA slashed 2019/20 soybean ending stocks from 640M to 460M bushels. That compares to 913M in 2018/19. The USDA increased its 2019/2020 price forecast on soybeans from $8.50 to $9.00/bushel; on soymeal from $305.00 to $325.00/ton; and on soybean oil from $.2950 to $.3000/lb.