<p>The anticipated USDA report released in January was friendly for the soy complex and that supported corn. However, overall world economics, growing global grain stocks and a precipitous decline in energy prices have limited upside movement in grains/oilseeds. The reported corn yield was reduced, which led to slightly lower production at 13.601 billion bushels. This was the smallest production figure since 10.780 billion bushels was produced in 2012&rsquo;s drought. Despite production slipping, demand slipped too. Export demand continues to wane. U.S. product is more expensive on the global market as global currencies impact prices. Ultimately corn carryout increased to 1.802 billion bushels, up from the previous estimate of 1.785 billion bushels and 1.731 billion bushels a year ago.&nbsp;</p>
<p>World coarse grains and corn stocks have continued to increase the last few years. World corn stocks today are at levels higher than what they were in the late 90s and the mid &rsquo;1980s. World carryout has increased dramatically the last two years and is one of the major reasons why corn prices have declined. The market will need a production issue this spring planting or this summer growing season to dramatically influence corn prices. One would need to see a steady depletion of stocks from production declines since demand has plateaued domestically and abroad.</p>
<p><em>* Comments in this article are market commentary and are not to be construed as market advice.<br /><br /></em></p>
<table border="0" cellspacing="0" cellpadding="0" width="342">
<colgroup><col width="150"></col> <col span="3" width="64"></col> </colgroup> 
<tbody>
<tr height="19">
<td width="150" height="19">(March Futures, $)</td>
<td width="64">&nbsp;</td>
<td width="64">&nbsp;</td>
<td width="64">&nbsp;</td>
</tr>
<tr height="19">
<td height="19">Date</td>
<td class="xl66">Close/bu.</td>
<td class="xl66">Close/ton</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td class="xl65" height="19">January 15, 2016</td>
<td align="right">$3.6325</td>
<td align="right">$129.73</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td class="xl65" height="19">December 15, 2015</td>
<td align="right">$3.7725</td>
<td align="right">$134.73</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td class="xl65" height="19">January 15, 2015</td>
<td align="right">$3.80</td>
<td align="right">$135.71</td>
<td>&nbsp;</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>

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2016/01/Corn-sky_14532225336705_thumb.jpg

2016/01/Corn-sky_14532225336705.jpg

The anticipated USDA report released in January was friendly for the soy complex and that supported corn. However, overall world economics, growing global grain stocks and a decline in energy prices have limited upside movement in grains/oilseeds. 

Commodities: Corn production numbers, demand, slip

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