Market Outlook

 

Feed Outlook: January 2021

Summary

 

Lower Corn Supplies Reduce Use, Raise Prices for 2020/21

U.S. corn production for 2020/21 is lowered to 14,182 million bushels, primarily due to the national average yield being reduced from 175.8 to 172.0 bushels per acre. Beginning stocks are also lowered, reducing total projected supplies by 400 million bushels compared with the previous month. The projected average farm price is raised from $4.00 to $4.20 per bushel, due to the tighter supply outlook. Domestic use and exports are also reduced, based on tighter supplies and higher prices. Corn exports are projected to be 2,550 million bushels in 2020/21, which would still be a record if realized, but is 100 million bushels less than projected in December.

U.S. corn production and exports are reduced, with exports projected down to a still record-high of 64.0 million tons. Argentine and Brazilian corn production are also lowered. Argentine exports are down, while Chinese corn use and imports are growing, as the spread between world and domestic prices is substantial. The imbalance created by these developments is pushing world corn prices higher, up sharply from just half a year ago. Higher prices are expected to limit corn consumption and imports in a number of importing countries.

See the Feed Outlook.