Corn demand is recovering, but the potential U.S. crop size remains a drag on the market.
The March Prospective Plantings Report projected 97 million acres of corn this year. Some analysts expect that number to drop. This could build upon “demand hopes”, since livestock feed needs are up and drivers are getting back on the road. University of Illinois Ag Economist, Todd Hubbs says that any reduction acreage would be negligible.
According to Hubbs, “I think in the western Corn Belt in particular... we’ll see a lot more corn acres than were penciled into the March USDA Prospective Plantings Report. Personally, I think you are looking at a minibus of 95 million acres...We could see a massive sixteen billion bushel crop.”
Sixteen billion bushels would push the 2020/2021 carryout well above the three billion bushel mark. Even if demand is good, Hubbs adds that prices will likely stay about where they are now.