Source: Reuters – Karen Braun (Karen Braun is a Reuters market analyst. Views expressed are her own.)
The United States will certainly harvest a huge corn crop in 2016, so it hardly matters if yield falls by a couple of bushels, right? Actually, it does.
Without dissecting the balance sheet and crunching the numbers, it might be hard to understand why slight variations in yield make a big difference in domestic supply.
Last month, the U.S. Department of Agriculture projected that domestic farmers will harvest 15.15 billion bushels of corn over the next couple of months, which would easily set a new record for the world’s leading corn supplier.
USDA also penciled in 2.409 billion bushels of corn carryover at the end of the 2016/17 marketing year, which began on Sept. 1. This would be the largest such volume since the late 1980s. Read more