On Tuesday, the USDA will release the May Supply and Demand report. This is the first month the agency forecasts in the new crop marketing year. The USDA will also update old crop demand numbers. NDSU Extension Crops Economist and Marketing Specialist Frayne Olson expects there to be a lot of focus on corn usage numbers. “I think the ethanol number will be down slightly from what we’d typically see. On the feed side, I think demand will be influenced by livestock inventories and herd size, given the change in meat prices. I don’t expect to see the total herd size change a lot, but we may see a slowing of the growth rate in meat production.” Olson says corn exports could be a challenge, because there is uncertainty for global feed demand. For soybeans, Olson is focusing on export numbers. “There are lots of questions right now about the U.S. and China phase one agreement. Will China live up to expectations? The USDA as a rule generally forecasts exports given current policy. I do expect them to include the impacts of a fully implemented phase one agreement. The soybean export numbers may be a little strong given today’s information, but we’ll have to wait and see.” Olson is watching wheat exports as well, looking at the price competitiveness of U.S. wheat. The report will be released on Tuesday at 11 a.m. central.
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