USDA surprises

By Jon Scheve, Superior Feed Ingredients, LLC

It has been over a week since the latest USDA report.

The biggest surprise was harvested acres being down significantly due to dry weather in Nebraska and Kansas. With those acres removed from production, the national yield average rebounded slightly. Still, overall production is lower than previously estimated.

The USDA also decreased corn export demand to an attainable level as the U.S. prime corn export season begins. Currently it is uncertain if world buyers will fill their storage facilities or wait to see how big the next crop in Brazil will be in May. There were some additional surprises in the January report that will take time for the market to digest.

Sorghum

While many market participants have discussed the drop in harvested corn acres and the slight increase in yield, they have overlooked sorghum. Sorghum had a 58% production decrease from last year, which means 200 million fewer bushels of a crop that competes directly with corn in the southern plains feed channel.… Continue reading