USDA’s Quarterly Grain Stocks report came in with corn stocks 6% higher than 2021, with soybean stocks up 26%. However, wheat in storage dropped 22% an 8 year low. But does this accurately describe why cash corn and bean prices are so strong and does this really leave much room for error this season?
No, according to Matt Bennett of AgMarket.net. “I feel like corn. if I was comparing the two, I’d probably be a little more surprised as far as the corn stocks number. but regardless, the situation still isn’t over. you know, corn acreage at 80.99. obviously, a lot of folks felt like that was going to go up. that pretty much was the average trade guess. You know, we came out with 89.7. We felt like corn acres should be up, just not substantially. no surprise there. you start plugging in corn and bean acreage numbers into your balance sheets, though, and you find out that whether it’s corn or beans, we’re in a tight enough situation. mother nature is really going to have to get along well this through the months of July and August, or I’m afraid that it could be a pretty dicey situation for stocks.”
