Joel Karlin, commodity manager and market analyst for Western Milling in Goshen, said while USDA downgraded yield estimates slightly from its July forecast, sending corn prices higher recently, he thinks the current projections are too low.
"Not only do I think the upcoming crop is larger, but I also think USDA's estimates for export demand and also for domestic feed demand are somewhat optimistic, perhaps unrealistically so," he
noted that despite a wet spring that delayed planting this year, summer growing conditions in the Corn Belt have been favorable, promising a bountiful harvest.
Other major grain-producing regions of the world also enjoyed a good growing season, which means more export competition for the United States, he
And with the nation's low cattle numbers and continuing dairy herd liquidations, Karlin
said, "we don't have the animal numbers out there to eat that corn.