August 17

8/17 – In last week’s WASDE, the USDA raised its forecast for 2020/21 corn output and said yield will hit a record-high 181.8 bushels per acre. On the demand side, 2019/20 corn exports will hit a 7-year low, down 15% from a year ago. A big crop and slack demand prompted the USDA to slash it’s 2020/21 corn price forecast from $3.35 to a 14-year low of $3.10 per bushel. Corn futures, which started the year at $3.91 closed at $3.24 on Friday. The USDA also raised projected 2020/21 wheat output, but extra supplies will more than offset a 25M bushel increase in exports. 2020/21 wheat ending stocks could reach a 6-year low. Despite tight supplies, the USDA reduced its 2020/21 wheat price forecast by a dime to $4.50 per bushel. Chicago wheat futures at $5.00/bushel (8/14) are down from $5.39 in late July. KC hard red winter wheat at $4.25 is down from $4.59 in July.