Market Report: Corn and Beans Lower

It was another tough day for corn, which closed 7-8 cents lower. In the monthly Supply Demand report this morning, the USDA raised corn carryover for old crop to 1.876 billion bushels. That is 25 million bushels more that the trade estimate. In the world numbers, the carryover was raised by 10MMT. I suspect that is why corn was down hard today. The Energy Information reported that ethanol production increased 20,000 barrels per day. Plus it was a record for weekly production.

Soybeans closed 2-3 cents lower after the report. Old crop carryover was dropped by 20 million bushels to 330 million bushels. World carryover was dropped by 1.8 MMT and new crop was decreased by 3.03 MMT. With the current domestic and world demand for beans oil and meal, you have to think those carryover numbers will decrease even more. It seems very likely we will put a two in front of the old crop carryover number. While that would be a lot lower than traders were thinking a few months ago, it is still ample. We are not going to run out of beans.