News & Publications
June 13, 2023 |
Drought concerns create analysis paralysis
Ag Marketing IQ: Marketing decisions should be known and in place before volatility occurs.
Price volatility in new-crop corn has been relatively low of late, although there is still considerable uncertainty about U.S. corn production potential. The USDA report Friday was rather unexciting.
The carryout for the U.S. 2022-23 corn crop increased 35 million bushels from last month to 1.452 billion bushels due to the expected reduction of exports and imports. These changes carried through to the 2023-24 bottom line with ending stocks increasing to 2.257 bbu, 20 mbu more than the trade average. South American changes were mostly as expected with Brazil up 1 and Argentina down 2. Old crop export competition increased with the net being a near 2 million metric ton increase from last month, with the bulk of the increase coming from Ukraine.
