WASDE lowers corn yield with limited impact on STU
Despite the estimated impact of the derecho event last month, the 2020/21 U.S. corn crop still looks to be one of the largest on record. With a minor boost to beginning stocks, total supply is projected to increase 8 percent over last year and 4 percent above 2018/19. The Dec-20 futures contract responded with a minor increase in pricing, reflecting changes that were likely already priced in ahead of the report. Reasonable downward adjustments to total demand for 2020/21 kept ending stocks at a relatively high level of just over 2.5 billion bushels.
Strength in the soy complex is supportive to coproduct values and, considering we will soon enter peak demand for feed components of coproducts, should help to keep net corn cost tame despite the recent uptick in corn prices.
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