Two agriculture market analysts speaking from the CME Group floor today said they believe the November USDA supply and demand report may actually show a slight increase in the expected total U.S. corn crop.
Most trade analysts project a third straight month of decline in the nation’s crop to around 10.65 billion bushels, but Kyle Schrad of FC Stone said that his firm expects a number about 2 percent higher than industry expectations. One of the main reasons for this?
“We started to hear towards the tail end of the season as people got into the fields and got their harvest started, was that those numbers were coming in a little better than expectations.”
Jack Scoville of Price Futures echoed the same sentiment – that the 2012 corn crop for U.S. farmers might not be quite as bad as once thought, despite the effects of one of the worst droughts since the dustbowl.
“My producers seemed to be pleasantly surprised once they got into the field. The big question is the harvested acreage. The trad is actually leaving their yield estimates alone at right around 122 bushels per acre. I personally think that could creep up just a touch.”
Schrad and Scoville made their comments as part of CME Group’s monthly crop report preview from analysts.