January 22, 2020

U.S.D.A. Reports: Clearer Picture For Production, Prices and Corn / Ethanol Considerations

I. U.S.D.A. Reports
II. Canadian Corn Case
III. Disaster Aid
I. U.S.D.A Reports

Yesterday (January 12), the U.S. Department of Agriculture released three key reports, which contained additional information on U.S. crop production and usage. The current supply and demand snapshot will have implications with respect to market prices, production allocation decisions, federal farm payment distributions and consumer prices.

Policy makers will examine the results of these recent reports closely as they set to work on the 2007 Farm Bill, particularly with the keen bipartisan political interest in renewable energy issues that currently permeates the executive branch, the new Congressional leadership and House and Senate Agriculture Committees.

Corn Planting
N.A.S.S. Will Release Corn Planting Projections in March

In anticipation of the release of the reports, Joe Poncer stated in Friday morning’s Wall Street Journal that, “Chicago Board of Trade corn futures settled sharply higher, as large-scale position-squaring ahead of today’s Department of Agriculture production and stocks data pushed prices higher, sources said.

“Most-active March corn rose 16.25 cents to $3.765 a bushel. Corn yesterday rose as high as $3.8025 a bushel, up 20 cents, which is the exchange-imposed daily price limit.”