Corn futures came under pressure last week as good production prospects firmed market expectations of bearish conditions for the foreseeable future. The Dec-20 contract closed the week down 20 cents per bushel.
The Jun. 30 Acreage and Grain Stocks reports are on the minds of market watchers. Analysts are expecting corn acreage to come in around 95 million acres, 2 million less than the estimate in the March report. The March number seemed ambitious even then, and as corn futures have fallen to the low $3s per bushel, many wonder if farmers haven’t reconsidered plantings.
The Grain Stocks report is also one to watch, in terms of solidifying demand for 2019/20. The average analyst estimate ahead of the report indicates stocks of around 5.0 billion bushels—about 200 million bushels shy of stocks on Jun. 1, 2019.