Analysts discuss what corn prices will do in 2015

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  Early into 2015, analysts are predicting what corn prices will do this year.

  From WATTAgNet:
  Early into 2015, analysts are predicting what corn prices will do this year. Todd Hultman, a DTN analyst, and economists at the University of Illinois take a look at the future of corn prices.
  Hultman points to a historical relationship between December corn prices and the previous year’s cost of production as estimated by the U.S. Department of Agriculture (USDA). He says December corn historically trades higher than its previous year’s cost of production, excluding land, and a 50 percent premium above that cost.
  According to Hultman, for 2014, USDA estimates a cost $516.61 to produce an acre of corn, not including the cost of land; $516.61 an acre divided by USDA’s estimated yield of 173.4 bushels results in a cost per bushel of $2.98. USDA’s yield estimate may change in the Jan. 12 WASDE report, and their cost estimates will be updated on May 15. But until then, $2.98 is the estimated minimum price for December corn in 2015 and $4.47 is the estimated maximum.
  Meanwhile, University of Illinois economists are discussing whether the new low level of corn, soybean and wheat prices means the “new era” in grain prices that began in late 2006 has come to an end.

US corn, soy prices following expected post-drought patterns

U.S. corn and soybean prices have generally followed the expected pattern experienced in other "short crop" years, with prices peaking near harvest and returning to pre-drought levels later in the marketing year, according to University of Illinois agricultural economist Darrel Good.
“For old-crop corn prices, July 2013 futures peaked at $8.24 on August 10, 2012, nearly $3.00 above the June 2012 low,” said Good. “That contract is currently trading near $6.50, well below the peak, but still above the pre-drought level. Due to an inverted price structure, spot-cash prices have been above July futures in much of the Corn Belt since January 2013, and that strong basis continues.
“Prices remain generally high as it is not yet clear that the small crop of 2012 has been sufficiently rationed,” he said. “Exports remain weak, but ethanol production is rebounding from the low levels in the first half of the marketing year. Uncertainty still surrounds the magnitude of feed and residual use of corn."
For new-crop corn, prices have completed the transition back to pre-drought levels, according to Good. December 2013 futures peaked at $6.64 on September 10, 2012, about $1.50 above the June 2012 low. That contract is currently trading just over $5.15, about $0.05 above the summer 2012 low. Soybean prices have behaved similarly to corn prices but are still well above pre-drought levels. July 2013 futures peaked at $16.05 on Sept. 14, 2012, about $3.85 above the June 2012 low. That contract is currently trading near $14.60, still in the upper half of the trading range of the past year.
Due to the ongoing futures price inversion, spot-cash prices in the Corn Belt have been above July futures all year, with basis levels strengthening in recent weeks. Old-crop prices are being supported by prospects of a minimum level of year-ending stocks and the need for consumption to remain under the pace of a year ago.
For new-crop soybeans, prices are closer to a complete transition back to pre-drought levels, said Good. November 2013 futures peaked at $14.10 on September 14, 2012, $2.70 above the June 2012 low. That contract is currently trading near $12.25, $0.85 above the low of a year ago and $1.85 below the peak.

Lower feed use, exports mean higher US corn ending stocks

U.S. corn ending stocks for 2012-13 are projected at 757 million bushels, showing an increase of 125 million bushels from the previous month. The latest figures were part of the United States Department of Agriculture's World Agricultural Supply and Demand Estimates report, released on April 10.
The increase in corn stocks was largely reflected in a projected 125 million bushel decline in corn feed and residual disappearance.
"Feed use wasn't quite as great as many had anticipated," said USDA chief economist Joe Glauber during a USDA broadcast report.
Corn exports were also projected at 25 million bushels lower at 800 million bushels, which Glauber noted is the lowest they have been since 1972-73. The adjusted export projections reflect the continued sluggish pace of sales and shipments, as well as more competition from South America and other nations.
The World Agricultural Production report, also released by the USDA on April 10, forecast Brazilian corn production at a record 74 million tons, up 1.5 million tons from the previous month and up 1 million tons from the previous record set a year ago. The forecast does not reflect any increases in acreage, but yield estimates were increased because of consistent rains since late February.
Also mentioned in the World Agricultural Production report was an upward adjustment of corn production in the European Union, which is now at 56.1 million tons, up 1.4 million tons from the previous month's projections. Those increases were specifically reported in Poland, Hungary and Spain. 

Japan may boost US corn imports on competitive pricing

Japan may increase its imports of U.S. corn as a bear market makes prices more competitive, according to industry officials. Purchases for the three months through September may jump 41 percent to 2.6 million metric tons from the May–June quarter, said Nobuyuki Chino, president of Continental Rice Corp.
Purchases from the U.S. slumped 25 percent to 1.85 million metric tons for shipment this quarter, representing 50 percent of Japan’s total imports, said Chino. Higher prices last quarter, coupled with the yen’s 8.6 percent drop against the dollar, boosted costs for feed mills, leading them to seek cheaper alternatives from Brazil, Argentina and Ukraine.
Corn dropped the most in 24 years and entered a bear market on April 1 as bigger-than-expected U.S. stockpiles and increased planting suggest ample supplies, according to the industry. Farmers will plant 97.282 million acres in 2013, the most since 1936, after 2012's drought cut U.S. output by 13 percent and boosted futures to a record, said the U.S. Department of Agriculture on March 28. Japan needs 2.7 million metric tons of corn next quarter for livestock feed and 1 million metric tons for food, sweeteners and other purposes, said Chino. Buyers may source about 70 percent of the total from the U.S.

US corn inventory may hit 26-year high on record output

U.S. corn inventories are estimated to triple before the 2014 harvest, hitting a record 2.177 billion bushels from the 17-year low of 632 million bushels anticipated in 2013, according to the U.S. Department of Agriculture's latest report. Yields could average 163.6 bushels per acre after falling to 123.4 bushels per acre in 2012, and corn production will rise 35 percent to a record 14.53 billion bushels as consumption increases 16 percent, said the report.
Corn prices paid to farmers in the 12 months that begins September 1, will average $4.80 per bushel, down from a record $7.20 forecast in 2013. An increase in exports and use in domestic grain-based ethanol will be countered by declining gasoline consumption and increasing output in Brazil, Argentina, Ukraine and India, said Peter Riley, an economist at the USDA's Farm Serve Agency. “The world market has changed as high U.S. prices have led to increased exports by other suppliers,” said Riley. “Falling U.S. gasoline consumption will restrain ethanol production. Brazil is shipping more to the U.S.”
Through February 21, corn futures on the Chicago Board of Trade dropped 19 percent from a record $8.49 on August 10. The contract for May delivery rose 0.7 percent to $6.905 per bushel at 10:02 a.m.

US corn prices up on smaller-than-expected stockpiles

U.S. corn prices capped their biggest rally since July 20, 2012, on January 11, rising 4.2 percent over five straight days, the first weekly rally since November 30, 2012, according to reports. Corn futures for March delivery advanced 1.4 percent to close at $7.0875 per bushel on January 11 on the Chicago Board of Trade, the biggest gain since December 14, 2012.
The unexpected numbers are due to a more significant drop in corn stockpiles than previously forecast, due to the drought-reduced harvest and rising demand for livestock feed, according to analysts. Inventories on December 1, 2012, were 8.03 billion bushels (204 million metric tons), 17 percent less than the 9.647 billion bushels held in 2011, said the U.S. Department of Agriculture in its latest report. Supplies held in farmer grain bins fell 26 percent from 2011 numbers to the smallest for that time of year since 1995. The USDA said meat and poultry output will be 1.4 percent larger than forecast in December 2012.
The corn harvest totaled 10.78 billion bushels, said the USDA, up from 10.725 billion estimated in December 2012 but down from 12.36 billion bushels harvested in 2011 and the lowest in six years. Analysts expected 10.65 billion bushels, on average. Consumption in the three months through November 2012 was 3.74 billion bushels, down from 3.843 billion bushels in 2011. Exports will total 950 million bushels in the marketing year that began September 1, 2012, according to the report, compared with 1.15 billion bushels forecast in December 2012 and 1.543 billion bushels in 2011.

US corn prices up as supplies unexpectedly drop

U.S. corn futures for December delivery rose by the 40-cent limit to $7.5625 per bushel, the most in three months, as the U.S. Department of Agriculture reported supplies at 988 million bushels as of September 1. That number puts stockpiles down 12 percent from 1.128 billion bushels during the same time in 2011 as well as short of the 1.145 billion bushels originally predicted by analysts.
Wheat and soybean futures were also up. December wheat increased 5.5 percent to $9.025 per bushel, the largest increase since June 25. Soybean futures for November delivery rose 1.9 percent to $16.01 per bushel, though the price fell 8.9 percent in September.

Large US corn crop jeopardized by drought

The largest U.S. corn planting in 75 years is being put in jeopardy by a drought stretching from the central plains to the eastern corn belt, according to reports. The yield forecast has been reduced 4 percent, 1 billion bushels, since May estimates, and 8 percent of the corn land will not be harvested, says the U.S. Department of Agriculture.
Farmers planted 96.405 million acres of corn in the spring, 5 percent more than in 2011 and above an average trade estimate of 96.090 million acres, according to the USDA. But only 88.851 acres are expected to be harvested, less than the 89.1 million estimated in a June monthly report. By the time fall arrives, U.S. corn stockpiles will be the lowest in 16 years — it had been hoped that this year's bumper crop would replenish stocks, but if the drought continues, that might not happen, say analysts.
Areas that have seen little rain, have claypan soils or compacted soils may see large yield losses if the drought continues.

Record US corn harvest could mean $4 per bushel

The current forecast of a record U.S. corn harvest could lead to $4-per-bushel prices on new-crop December contracts, according to analysts.
The December contract, the first month to typically reflect the year's corn harvest, fell on May 11 to the lowest level in nearly 15 months, closing at $5.05-1/4 after breaking below $5 for the first time in 17 months. Weather, said analysts, will be a significant factor, particularly in July, when plants pollinate and yields are set. High heat and dry weather could hurt plant development and reduce yield. "New crop corn will be about $4 probably after mid-July," said grains analyst Robert Bresnahan of Trilateral Inc. "A large portion of the crop was planted early and they received timely rains. I see a downtrend (in prices)."
The U.S. Department of Agriculture is currently forecasting a record corn harvest of 14.8 billion bushels, up nearly 20 percent from 2011's harvest. The corn yield estimate is at 166 bushels per acre.

US corn surplus estimates remain low for fall 2012

An estimated 846 million bushels of corn will be on hand at the end of summer 2012, a surplus that satisfies demand for less than 25 days and fails to meet the 30-day supply considered to be a healthy stock, according to the U.S. Department of Agriculture.
A low supply in 2011 contributed to high food prices, which rose between 3.25 percent and 3.75 percent, said the USDA. Food inflation is expected to slow in 2012, dropping to between 2.5 percent and 3.5 percent, but corn is likely to remain above $6 a bushel for all of 2012, which will keep food prices high. Growing demand from livestock producers in China and the U.S. ethanol industry will counter any surpluses, according to the USDA.

US Department of Energy commits to cellulosic ethanol plant funding

The U.S. Department of Energy announced a conditional commitment for a $105 million loan guarantee to support development of the nation's first commercial-scale cellulosic ethanol plant. Project Liberty, sponsored by Poet LLC, will produce up to 25 million gallons of ethanol per year at the plant, which will be located in Emmetsburg, Iowa. 
"This project will help decrease our dependence on oil, create jobs and aid our transition to clean, renewable energy that is produced here at home," said U.S. Energy Secretary Steven Chu. "The innovations used in this project are another example of how we are seizing the opportunity to create new economic opportunities to win the clean energy future."
Unlike many conventional corn ethanol plants, Project Liberty will use corncobs, leaves and husks from local farmers that do not compete with feed grains. The project's process uses enzymatic hydrolysis to convert waste into ethanol, which will produce enough biogas to power the project's grain-based ethanol plant. Poet estimates the project will create about 200 jobs during construction and 40 permanent jobs at the plant. Poet also estimates the project will generate nearly $14 million in new revenue to area farmers.
Project Liberty will displace over 13.5 million gallons of gasoline annually and fulfill more than 25% of the projected 2013 Renewable Fuel Standard Requirement for biomass-based cellulosic ethanol, Poet estimates. Poet also plans to replicate the process at 27 of the ethanol producer's other corn ethanol facilities, with a projected combined annual capacity of one billion gallons per year of cellulosic ethanol.

US corn growers support free trade with Korea, Colombia, Panama

The National Corn Growers Association supports the pending free trade agreements with Korea, Colombia and Panama, said NCGA CEO Rick Tolman in a statement to the U.S. House Agriculture Committee.
“Increased production and a consistent product make the United States a reliable supplier of corn in the world market," he said. "Beyond increasing domestic and international demand for corn, passing these FTAs also benefits our customers in the livestock and poultry industries. Developing new markets for our country’s agricultural products will help our sector lead the nation in economic growth and international competitiveness." The full text of the NCGA statement can be found at http://agriculture.house.gov/pdf/hearings/Tolman110512.pdf

US corn and soybean futures drop as exports slow

U.S. corn exports were down 43% in the week ending April 21, to 348,969 metric tons from a week earlier and the smallest amount in six months.

July corn futures on the Chicago Board of Trade dropped by the limit of $0.30 (4%) to close at $7.2925 on April 28, the biggest decline since March 15, according to analysts.
An easing of demand for U.S. supplies has contributed to the numbers. U.S. exporters sold 348,969 metric tons of corn in the week ending April 21, down 43% from a week earlier and the smallest amount in six months, according to the U.S. Department of Agriculture.
The price also fell on forecasts for drier weather in the Midwest that may allow for increased planting, said Dale Durchholz, senior market analyst at AgriVisor LLC. Only 9% of the U.S. corn crop was planted as of April 24, compared with 46% by this time in 2010, due to unfavorable weather. “Worries about U.S. planting delays may have peaked,” said Durchholz. “There is plenty of time to plant corn next month, and people are going to be surprised by how many acres farmers can plant in a short period.”
Soybean futures also fell from a two-week high as overseas and domestic demand eased, by $0.31 (2.2%), to close at $13.535 a bushel in Chicago. Earlier, the price reached $14.005, the highest since April 11.

Agriculture organizations support bill to end California ethanol subsidies

A California Assembly bill, AB 523, has been introduced that would end state ethanol subsidies; organizations such as the California Poultry Federation and Western United Dairymen have given their support.

Twenty-two agricultural and business organizations have said they support the end of California subsidies for the production of corn-based ethanol.
A California Assembly bill, AB 523, has been introduced that would end the subsidies; organizations such as the California Poultry Federation and Western United Dairymen have given their support.
In a statement to the assembly, the agricultural groups asked legislators to consider the following:

• Increased demand and competition for corn resulting from growth in corn-based ethanol production has driven up the price of corn to over $7 per bushel, more than doubling in price from just last year;
• Higher corn prices directly impact California families through higher food prices. Corn is a basic ingredient in thousands of food items and rising prices affects families of all income levels, particularly low income households;
• Rapidly rising corn prices are having a highly detrimental effect on undeveloped and developing countries and exacerbating world hunger; and
• California poultry, dairy and cattle producers, heavily impacted by the cost of feed, are being decimated by the run-up in corn prices. These businesses have seen multi-million dollar increases in weekly feed costs over the previous year and costs are continuing to rise. Collectively, these industries provide more than 500,000 California jobs and face financial ruin. 

US Corn, soybean forecast for 2011

Current consumption of US corn and soybeans is a great deal higher than industry analysts expected, according to Tim Brusnahan, vice president of Brock and Associates, speaking at the recent WATT Online Animal Forum: Feeding the Globe. The production of ethanol, together with several other factors, appears to be at the heart of current fluctuations in the feed ingredients market and as a result, in the livestock markets as well.
Planting intentions for 2011
Referencing the recently released USDA report on 2011 planting intentions, Brusnahan noted that of the eight major crops there was an overall increase of 8.6 million acres planted versus last year. Corn plantings came in at 92.2 million acres versus a pre-trade estimate of 91.8 million acres. On the soybean side, acreage expected came in slightly less than the pre-trade market had planned on, and wheat as a whole came in slightly higher, with the exception of durum wheat which came in slightly lower.
USDA grain stocks report
The recent USDA grain stocks report was also cause for a good deal of concern in the industry. As of March 1 the amount of corn remaining in the US from last year’s harvest is 6.52 billion bushels. This is 1.2 billion bushels behind last year and below pre-trade estimates of 6.69 billion bushels. In addition, soybeans are at 1.248 billion bushels, which is 22 million bushels less than last year and below pre-trade estimates of 1.3 billion bushels. Consumption of corn was at an all-time high this past quarter and soybean consumption was near an all-time high.
Corn futures prices are currently around $7.00 in the nearby contract, which is representative of the 2010 crop year. This is far above the $5.50 to $6.00 level which is a more typical value for the stock. As a result, based on the current market conditions, Brusnahan’s firm is predicting that crop prices for corn will continue to be volatile for another year and a half.
Corn usage
Brusnahan noted that the current stock to usage ratio for corn is at five percent as a result of ethanol production and feed consumption. A five percent usage ratio is, when one looks back as far as 1926, close to one of its lowest points. This low usage ratio is causing worldwide concern. Brusnahan noted that getting back to a usage rate above the 20 percent range is highly unlikely. He said he believed that a ratio in the 10 percent range was far more possible if farmers can get in a really good crop this year.
Ethanol industry
Corn quality for the production of ethanol was very strong in the second half of 2010, which resulted in a close correlation between corn and ethanol prices. Profitability for ethanol producers has been very good in the last six months and the ethanol industry is running at almost 100 percent capacity.
Exports have also become an important part of the ethanol equation. Demand from the EU has been strong. Demand from Brazil has been particularly strong because sugar prices there have become too high. In addition, demand for DDGS is increasing. Some DDGS is being exported, though the majority of it is being consumed in the US. It should be noted that there was a brief spike in demand for DDGS from China in mid-2010, but that has currently tapered off. In addition, US pork producers are beginning to use DDGS because of the high price of corn.
Global supply and demand
Brusnahan noted that while the supply of corn worldwide has tightened, we are in no way running out. Globally, we have a 15 percent stock to usage ratio. He did point out that since the US is the primary producer of corn, if US production declines it will have a global impact. He also noted that while China’s imports and exports have been inactive the last few years, their corn supplies are low. He said if the US were to have a particularly good corn crop it would not be a surprise to see China import some of it.
World soybean demand has been relatively stable, when taken as a whole. Soybean exports have been running steady, with the majority going to China.
Supplies of wheat look fairly good. US supplies are “fairly adequate,” and globally there will most likely be some improvement, as it is unlikely that the US, Canada, Europe and Russia will all have a bad crop year at the same time.
Livestock
The livestock industry has had a difficult challenge over the last four years in the US, and many markets have adjusted as a result of the higher cost of feed, Brusnahan observed. Right now pork and beef seem to be doing the best, and the poultry and dairy industries seem to be having a more difficult time. There are 9.2 million dairy cows in the US, and a large percentage of those facilities are totally dependent on buying feed for milk production, particularly in western states where producers are unable to offset feed costs by growing the crops themselves.
Pricewise, cattle and swine production have been doing the best. The egg industry has been volatile for a number of reasons. Pork supplies are, for the most part, stable. Per capita meat consumption has also been fairly stable. After experiencing a drop in consumption, the poultry industry is beginning to see more consumption, largely because of higher prices for pork and beef.
Pork exports have been “phenomenal,” Brusnahan said and this is fueling the current high prices for pork. Exports to China and Japan have been a huge benefit for US pork producers as pork is a major meat protein for China, and China consumes approximately half of all pork produced in the world. This is also helping drive the demand for US soybeans as a feed source for pork.
Right now beef inventory is low, but beef margins have been relatively good. This has helped dairy producers; as they cull their herds they are able to return a favorable cash flow to their operations as they replace their dairy cows with fresh heifers. However, Brusnahan noted that cattle and cow calf producers nationwide have been facing a difficult decision in whether to use existing acreage for crops or for pasture, given the high price of corn. This could be in part what is fueling high beef prices.
Poultry
While the broiler market has recovered, it is not highly profitable, and most returns in January and February were negative. Going forward there should be improvement in March’s numbers for most US poultry companies. Within the global arena the US is a large consumer of broilers, so this has helped stabilize the overall sector. Russia has recently begun importing fewer US broilers, and while this does not appear to be having a significant impact at this point, it is definitely an area of concern for US producers.
Summary
Corn and soybean March 1 stocks numbers were lower than industry analysts expected. The first statistical data point for 2011 corn supplies was dramatically bullish, which means that not enough acres were planted. Since July, 2010 there is no evidence to date of supply rationing, and corn and soybean prices will now likely stay strong into late June/early July.

To hear and view Tim Brusnahan’s presentation in its entirety, go to http://www.wattevents.com/ to access the archive of the WATT Online Animal Forum: Feeding the Globe. All five presentations will be available for view at no cost until July 6, 2011.

Iowa corn planting delayed by weather

Only 2% of Iowa's 2011 corn acreage has been planted through April 17, compared with 16% at this time a year ago, according to the U.S. Department of Agriculture.

A U.S. statewide survey shows that only 2% of Iowa's 2011 corn acreage has been planted through April 17, compared with 16% at this time a year ago, according to the U.S. Department of Agriculture.
Iowa, the top corn-producing state in the U.S., trails the national average, which showed 7% of the corn in the ground through April 17. Illinois, which ranks second among corn producing states, has 9% of its corn planted, while Missouri has 26% planted. "We like to get as much of our crop planted in April so corn can be ready to harvest by late September and less vulnerable to fall frosts," said Sean Harmon, a farmer in central Iowa. "I like to be in the field with the planter around April 12, but that isn't happening this year."
Farmers have been unable to plant their crop due to rain and soil temperatures, which are still too cool for planting, according to Harry Hillaker, state climatologist for the Iowa Department of Agriculture.
The wettest week since November and temperatures as much as 10 degrees F below normal reversed an initial warming of the spring soil. Overall soil temperatures remain below the 50-degree F threshold needed for corn plant germination.
The markets are watching corn planting progress more closely than usual because domestic corn stocks are at a 15-year low, with export and ethanol demand still going strong, according to experts. Any significant weather problems with the crop this spring and summer could raise corn prices even higher, which could lead to higher meat prices and affect ethanol plants and livestock producers. "Tight grain stocks are demanding that everything go well this year with crop production," said Arlan Suderman, market analyst for Wallaces Farmer.

South African wheat, feed corn prices fall slightly in response to drop in US prices

South African wheat and feed corn prices have fallen slightly in response to dropped prices in the U.S., according to reports.
Wheat for May delivery dropped Rand 25 (0.8%) to close at Rand 3,165 (US$455) per metric ton in Johannesburg, while it slid $0.0675 (0.8%) to settle at $8.1025 per bushel on the Chicago Board of Trade. Feed corn for July delivery dropped Rand 17 (1%) to Rand 1,636 per metric ton in South Africa. Soybeans actually gained slightly, closing at Rand 3,462 (0.5%) from Rand 3,445, while sorghum remained steady at Rand 1,580.

US poultry prices slated to rise 2% to 3% in 2011 due to increased corn costs

The U.S. Department of Agriculture is predicting a 2% to 3% poultry price increase in 2011, which will bring the national average price for boneless chicken breast to $3.424 per pound (from $3.324 per pound).
U.S. corn supplies are at their lowest levels in 15 years, due to an increase in demand coupled with a decline in reserves as more of the harvest goes to the ethanol industry. This situation is having an even greater impact on pork prices, which are expected to increase 3.5% to 4.5%. "All of the meat commodities that we put in the center of the plate are going to have some price (increases)," said Tom Jackson, president and CEO of the Ohio Grocers Association, since chicken, hogs and cattle are all fed corn.
According to grocers, poultry products will be the first to reflect the price increases. "Pork will follow, then beef," said Food-4-Less owner Bucky Lee, who has been in the grocery business for 44 years. "It just takes them longer to get fed and into the food supply."

Corn prices fall 11% in response to revised stock numbers

Corn prices fell after new numbers indicated a larger domestic stock than previously believed, according to a U.S. Department of Agriculture (USDA) report.
Prices fell 11% from only a week ago, to a low of $4.54¼ per bushel on Monday before stabilizing at $4.68. According to the USDA, however, lower forecast production (496 million bushels lower) and higher projected domestic disappearance leave ending stocks down sharply from last month, in spite of the revised 2010-2011 beginning stocks (which come to 322 million bushels more than originally estimated). While a 258,000-acre increase in harvest area has been reported, it is offset by a 6.7-bushel-per-acre reduction in yield.
Corn export numbers have been lowered by 100 million bushels with tighter available supplies, higher prices and increased competition from Argentina factoring in. Global supplies, however, are nearly unchanged, as the lower U.S. supplies are being offset by increased foreign coarse grain production.

Shipping all US corn sold expected to be difficult

An economist at the University of Illinois predicted in a recent Agrimoney report that the U.S. will have trouble shipping all of the corn it sells for 2009-10 exports.
Economist Daniel Good said corn sales will meet a U.S. Department of Agriculture projection of 1.95 billion bushels this season, but he’s not sure all of the corn will be shipped before the season ends.
Corn left unshipped would be counted among year-end inventory and could impact price.