<p>The USDA released the final January supply/demand estimates for the 2014/15 corn crop and a surprising fact was that the national corn yield was lowered from 173.4 to 171.&nbsp; This was the largest yield drop from November to final since 1993, when the yield was dropped by the same 2.4 bushels.&nbsp; Harvested acres remained unchanged; however, planted acres declined by 300,000 acres.&nbsp; The result was corn production at 14.216 billion bushels, down 191 million bushels.&nbsp; Demand for corn in this crop year was 13.595 billion bushels, down 75 million by from the previous estimate but 141 million bushels higher than 2013/&rsquo;14. Demand for corn for ethanol increased by 25 million bushels to 5.175 billion bushels; however, due to higher prices for milo there was a reduction of milo use in the industrial sector.&nbsp; Corn for feed and residual demand decreased by 100 million bushels despite livestock numbers increasing.&nbsp; Export demand was unchanged from the previous estimate and lower by 167 million bushels from a year ago.&nbsp; This is due to larger world corn stocks and a strengthening U.S. dollar.&nbsp; Overall corn carryout was lowered to 1.877 billion bushels.&nbsp; One thing to note is in Jan 2014 corn carryout was pegged at 1.631 billion bushels and declined to a final carryout of 1.232 billion bushels.&nbsp; The rise of exports throughout the year was the major reason for observing a shrinking carryout.</p>
<p>World corn ending stocks declined to 189 million metric tons (mmt) in this report, yet this is still an increase of 16.92 mmt and 51.21 mmt greater than in 2013/&rsquo;14 and 2102/&rsquo;13 respectively.&nbsp;South America&rsquo;s Brazil and Argentina are poised to produce 75 mmt and 22 mmt respectively.&nbsp; Ukraine is expected to produce 27 mmt.&nbsp; With no great weather concerns this growing season in the Southern Hemispere the global marketplace will be ready to buy South American corn when it enters the supply chain.&nbsp; Ukraine and eastern Europe will have corn for export but political woes could be seen as hampering their ability to fulfill that void.&nbsp; However, with no political fallout that corn has easy acess to the eastern world economies.&nbsp; Now that U.S .corn (and subsequently distillers grains) have been approved to enter the China supply chain, this could be longer term positive for the U.S. corn producer.</p>
<p>Corn price action is limited to the down side by the firm cash markets, however, upside limitations will be met by corn consumptive end-user observing dwindling processing and, or production margins.&nbsp;&nbsp;</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 width="130" height="17">Date</td>
<td class="xl65" width="69">High</td>
<td class="xl65" width="64">Low</td>
<td class="xl65" width="64">Close</td>
</tr>
<tr height="17">
<td class="xl66" height="17">January 16, 2015</td>
<td class="xl68">3.88</td>
<td class="xl68">3.79 1/2</td>
<td class="xl68">3.87</td>
</tr>
<tr height="17">
<td class="xl66" height="17">December 16, 2014</td>
<td class="xl67">4.11</td>
<td class="xl67">4.04</td>
<td class="xl67">4.06</td>
</tr>
<tr height="17">
<td class="xl66" height="17">January 16, 2014</td>
<td class="xl67">4.30</td>
<td class="xl67">4.25</td>
<td class="xl67">4.28</td>
</tr>
</tbody>
</table>

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2015/01/Corn-Pouring-web_14217828119114.jpg

The USDA released the final January supply/demand estimates for the 2014/15 corn crop and a surprising fact was that the national corn yield was lowered from 173.4 to 171.  This was the largest yield drop from November to final since 1993.

Commodities: USDA report contains some surprises

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