Morning Comments May 13, 2020

Corn Stocks

Opening Calls:

Corn down 1 to 2 

Beans down 1 to 2 

Yesterday, the WADSE report confirmed that ending stocks of U.S. corn and soybeans will increase for the 2019/2020 year. The WADSE report also estimated ending stocks for U.S. corn to grow to over 3 billion, with a “stocks to use” ratio above 22%. The last stock to use ratio over 20% was 1992/93. Beans had a small shocker with exports trimmed back by 100 million bushels, and trade had only been expecting a small cut. However, worldwide ending stocks for this year were virtually unchanged from the April information. (See below for charts) 

The USDA resurveyed the farmers in South Dakota, Minnesota, Wisconsin, and Michigan, and cut back yield and harvested acres by 29 million bushels; the USDA is still resurveying North Dakota and will have those numbers in June. 

The outside markets are supportive this morning with the dollar trading lower, crude slightly higher, and equity markets higher. A new Covid-19 stimulus bill was announced on Tuesday. The legislation, includes another round of direct payments to Americans, and $16.5 billion in direct farm payments and financial support to ethanol. 

Corn Balance
Soy Fact
Corn Stocks