Market Outlook

Feed Outlook, June 2020 (summary)

Lower Corn for Ethanol Reduces 2019/20 Use

2019/20 corn production is projected down 45.4 million bushels on reductions to harvested area and estimated yield. Diminished supply is largely offset by a 50-million-bushel decrease in corn for ethanol this month, for a market year total of 4,900 million bushels. The 50-million-bushel decrease in corn food, seed, and industrial use leaves 2019/20 projected disappearance at 13,780 million bushels. Carryin for 2020/21 is raised 4.6 million bushels. There were a few other minor changes to the feed grains balance sheets and prices are steady from last month.

Globally, with higher projected use more than offsetting the marginal increase in supplies, 2020/21 coarse grain ending stocks are projected down this month. Corn trade for 2019/20 involves two offsetting changes, with higher Argentine and lower Brazilian exports. China’s punitive tariffs affect the barley market, reducing Australian exports and leaving Australia with higher barley supplies in the face of better crop prospects..

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