Rich Nelson, says Biggest Surprise from USDA Acreage and Quarterly Grain Stocks Report Was the Corn NumbersTue, 30 Jun 2020 14:43:00 CDT
Today USDA released its June Acreage and Quarterly Grain Stocks Reports, and it looks like U.S. farmers planted a lot fewer corn acres and a slightly higher amount of soybeans this year, according to the USDA.
Associate Farm Director KC Sheperd spoke with Chief Strategist at Allendale, Rich Nelson, about the reports. He said the biggest surprise was the corn numbers, "5.224 billion bushels, which was 300 million higher than the average trade guess. This implies that our feed use, believe it or not, was actually a little weaker than expected than last quarter."
Nelson said the main discussion point for Acreage was that we lost 7 million acres from the March survey. Nelson says, "this shows very clearly that producers had a lot of resistance based on prices, low prices, virus concerns, and maybe some input concerns as well."
With both the corn and soybean numbers looking really good, Nelson said we could still see some lower prices in the upcoming months.
Nelson said he didn't see anything in today's report that would tell us much about trade deals with China. He says it is time for China to buy some farm commodities, but they are not jumping in just yet.
With Covid-19 impacting all aspects of daily living and agriculture, Nelson says it affects pretty much everything we can imagine, "On the grain side, lower driving levels do impact corn for ethanol, and it also impacts the 10% of soybeans which go into biodiesel. We also see impacts from the consumer side, as we aren't going to have this reopening we hoped for in the 2nd half of summer, it looks like we could see some concerns about meat demand in these next few months."
To hear the complete conversation with Rich Nelson at Allendale, click or tap below, and to see the comprehensive report from USDA on the Grain Stocks and acreage estimates, click Or here:
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