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USDA's May WASDE projected a record 2020/21 US corn crop of 15.995 billion bushels on a 178.5 bu/acre yield. Soybean production was forecast at 4.125 billion bushels, and the season-average corn price was set at $3.20, the lowest since 2006/07.
Ending corn stocks were projected to jump to 3.31 billion bushels.
A record crop and sharply higher carryout stocks point to weaker corn and soybean prices. Export and ethanol demand recovery is the main offset if COVID-19 effects ease.
farmweeknow.comDANIEL GRANT FarmWeekMay 12, 2020After 1,102 past bearish report events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% over 20.
After 788 past bearish report events, Soybeans moved a median -0.3% over 5 sessions (47% higher; middle half -2.0% to +1.5%), and -0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
