<p>May 18&mdash;The market had the opportunity to get an updated look at the old and new crop scenarios in the May USDA supply and demand report. Old crop supplies have been plentiful and carryout was increased slightly to 1.831 billion bushels. Old crop feed demand is 5.250 billion bushels with ethanol consuming 5.200 billion bushels, a fairly constant stream of demand. Overall, domestic demand is seen using 11.80 billion bushels of corn with exports taking 1.825 billion bushels.&nbsp;</p>
<p>The USDA released its first look at the new crop scenario. First, new crop planted acreage is projected to be 89.2 million acres and harvested 81.7 million acres.&nbsp; New crop yield was calculated at 166.8 bushels per acre compared to 171 bushels a year ago and 158.1 bushels in 2013/&rsquo;14. With planting&rsquo;s running ahead of last year&rsquo;s pace at this time, one can understand how the USDA yield was aggressive at 166.8 bushels per acre. With a carryin of 1.851 billion bushels and calculated production at 13.630 billion bushels total supply was at 15.506 billion, allowing for some imports. Demand from the feed category was increased to 5.30 billion bushels, ethanol steady at 5.20 billion bushels and exports increased to 1.900 billion bushels total use is 13.760 billion bushels (accounting for other industrial and seed demand). Carryout is calculated at 1.746 billion bushels. This would leave the market comfortable two years in a row with ample supplies and carryover.&nbsp; Ultimately this places pressure on the corn values.</p>
<p>Global corn ending stocks for the new crop year is forecasted to be 191.94 mmt, down slightly from 192.50 mmt. Production is lower but demand into the global feed markets is higher lowering carry-out.&nbsp;&nbsp;</p>
<p>Factors affecting prices during the growing season will be obvious weather issues that will arise. Moreover, the market will follow any impacts of outside influences such as weather in other global production areas and issues that could be short term affect livestock feed demand. Another factor that can impact demand will be the action of the U.S. dollar.&nbsp;&nbsp;</p>
<p>* Comments in this column are market commentary and are not to be construed as market advice.</p>
<table border="0" cellspacing="0" cellpadding="0" width="327">
<colgroup><col width="130"></col> <col width="69"></col> <col span="2" width="64"></col> </colgroup> 
<tbody>
<tr height="17">
<td class="xl69" width="130" height="17">July   futures</td>
<td width="69">&nbsp;</td>
<td width="64">&nbsp;</td>
<td width="64">&nbsp;</td>
</tr>
<tr height="17">
<td height="17">Date</td>
<td class="xl65">High</td>
<td class="xl65">Low</td>
<td class="xl65">Close</td>
</tr>
<tr height="17">
<td class="xl66" height="17">May 18, 2015</td>
<td class="xl68">3.71 1/4</td>
<td class="xl68">3.64</td>
<td class="xl68">3.68</td>
</tr>
<tr height="17">
<td class="xl66" height="17">April 20, 2015</td>
<td class="xl67">3.88 1/2</td>
<td class="xl67">3.82 1/4</td>
<td class="xl67">3.84 3/4</td>
</tr>
<tr height="17">
<td class="xl66" height="17">May 20, 2014</td>
<td class="xl67">4.81 1/4</td>
<td class="xl67">4.73</td>
<td class="xl67">4.73 1/2</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>

2015/05/Corn-ripe-ear_14321402306383_largethumb.jpg

2015/05/Corn-ripe-ear_14321402306383_thumb.jpg

2015/05/Corn-ripe-ear_14321402306383.jpg

The market had the opportunity to get an updated look at the old and new crop scenarios in the May USDA supply and demand report. Old crop supplies have been plentiful and carryout was increased slightly to 1.831 billion bushels. 

Commodities: Ample corn supply, carryover creates price pressure

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