The quarter ended in June with a sharp drop in the grain and soy complexes. Taking its toll on the ag complex is a crop that seems to be getting bigger, planted acreage that supports the former statement and bigger stocks.&nbsp;
The USDA placed June 1 corn stocks at 3.85 billion bushels vs. 7.00 billion bushels on March 1 and 2.7663 billion bushels a year ago. Disappearance was 3.154 billion bushels from March to June as compared to 2.633 billion bushels last year and a 5-year average of 2.980 billion bushels. &nbsp;The market was looking for disappearance to be 132 billion bushels more than what was released. The September stocks report will be released on Sept. 30 and the 3-year disappearance average is 2.215 billion bushels with last year 1.945 billion bushels.&nbsp; Soybean carryout found about extra 27.0 million bushels versus what traders expected.&nbsp; The July USDA supply and demand report will now reflect any shift in corn and soybean demand.
The USDA placed corn planted acres at 91.641 million acres, down from 91.691 million acres in March and 3.72 million acres less than last year.&nbsp; New crop corn was able to fade fast on the release of that data as some traders were expecting to lose some corn acres due to wetter spring conditions in the northern Corn Belt this spring.&nbsp; USDA decreased corn plantings by 400,000 acres in Iowa; 300,000 acres in Kansas; 100,000 acres in each Minnesota and Nebraska. The USDA added corn acres in Illinois, Indiana, Missouri, North and South Dakota. The acres expected to be harvested this fall are 83.839 million acres or 91.4 percent of what is planted.&nbsp; Note this planting number for corn was as of June 1; thus a possible revision could come early this fall, potentially. With 83.839 million acres harvested, which is actually lower than what the March report reflected; a yield of 165 bushels per acre still nets a production figure of 13.833 billion bushels and 13.385 billion bushels of demand. However, carryin should increase and the supply table ultimately be stable from the current new crop estimate.&nbsp; Now take yield to 170 bushels per acre.&nbsp; Production increases to 14.252 billion bushels with a perceived carryin of 1.20 billion bushels equaling total supply possibilities of 15.4 billion bushels.&nbsp;
The above scenarios place a lot of pressure on any upward momentum for corn. New and increased demand or a major production issue from weather will be needed for this market to sustain a friendly tone outside of general market corrections.
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The quarter ended in June with a sharp drop in the grain and soy complexes. Taking its toll on the ag complex is a crop that seems to be getting bigger, planted acreage that supports the former statement and bigger stocks. 

Corn crop projections bigger, new, increased demand needed

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