Market Watch

As a result of the March 29th USDA Prospective Plantings and Grain Stocks reports, the outlook for U.S. corn supply‐demand and prices has changed somewhat for both the “old crop” 2017/18 and “new crop” 2018/19 marketing years.   With lower 2018 U.S. corn planted acres forecast in the Prospective Plantings report than previous USDA projections or market expectations, prospects for 2018 U.S. corn production has been reduced.  At the same time, higher than expected U.S. March 1st corn stocks in the Grain Stocks reporthave signaled lower than expected usage of corn for livestock feeding during December‐February 2018 and in “old crop” MY 2017/18 than has been anticipated. Following these USDA’s March 29th reports, “old crop” MAY 2018 CME corn futures prices have traded sharply higher.  The day of the reports, MAY 2018 corn futures opened at $3.73 ¾, trading as high as $3.89 ¼ per bushel before closing up $0.14 ¼ for the day at $3.87 ¾.  “New crop” DEC 2018 corn futures traded $0.14 ½