November 11

11/11 – Friday’s USDA WASDE report was mostly neutral for grain prices. The USDA reduced projected corn harvest as cold, wet conditions late in the growing season cut yields in key production areas. Early snow/frost across the upper Midwest will likely further reduce yields in subsequent reports. The USDA cut corn yield from 168.4 to 167.0 bushels per acre. Corn production is now forecast at 13.66B bushels, down 118M from last month. Corn yield losses were partially offset by a drop in corn usage for ethanol and a lower export forecast. 2019/20 corn ending stocks were reduced from 1.929B to 1.910B bushels. The USDA raised its 2019/20 corn price forecast from $3.80 to $3.85 per bushel. Corn futures, which peaked at $3.90/bushel on 10/31, have dropped to $3.77/bushel (11/8). Forward corn futures contracts for 2020 are averaging $3.94/bushel.