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USDA January report may create selling opportunities for corn farmers

The vice president of farm services with NAU Country Insurance says corn farmers need to keep a close eye on the markets this month.

“That’s the seasonal trend in the corn market is to see a little bounce here in Jan & Feb.”

Rich Morrison says the USDA’s January supply and demand report is expected to bring adjustments to the U.S. crop size, which could bring opportunities.

“The trade is going to be looking for it.”  He says, “If I were to throw a number out, I would think the yield might drop to maybe 183 or 184, which takes a little bit off the top. Every little bit helps if we’re able to take some of the bushels away.”

He tells Brownfield that a potential reduction in crop size, coupled with continued record corn export demand, could have an impact on ending stocks.

“The biggest number we’re gonna look at in that WASDE report is gonna be the ending stock number.”  He says, “If we can get that below 2 billion bushels, then I think this market’s got a chance to get a little upside as we go into late winter.”

The USDA’s next supply and demand report is out on January 12^th.

AUDIO: Rich Morrison – NAU Country Insurance