The USDA may increase corn carryout in the April Supply and Demand report to reflect the loss of ethanol demand. “We’ll see how the USDA wants to try and factor it in,” says Clayton Pope, president, Clayton Pope Commodities. “The average trade guess is only looking for a 120 million bushel increase in the corn carryover. Most people seem to think we’re looking at a 200 to 400 million bushel cut or more for the current crop year. If it only comes in at a 120 million bushel cut, that would be a surprise.” Corn acres will be watched closely. “The number from March 31 was a real shocker to the corn market and there definitely seems to be an underlying assumption in the trade that is the highest corn acreage we’ll see moving forward,” says Pope. “The million dollar question is how many acres can and will get whittled off the 97 million acres. If we could bring it down to something more livable, that could help the corn market.”
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