(KMAland) — The USDA's March grain inventory report showed that large amounts of old grain are being stored on rural America's farms.
Joe Janzen, an agricultural economist at the University of Illinois, said farmers have a lot of grain.
“Quarterly grain inventories for corn and soybeans were in line with expectations, with corn at about 8.3 billion bushels and soybeans at about 1.8 billion bushels. This is roughly in line with average estimates from trade, but The difference was that those bushels were much more substantial than what had been stored on the farm in the past.”
So marketing will become even more difficult in 2024.
“Corn stalk and soybean inventories were pretty consistent last year in terms of off-farm inventories, but at this time on-farm inventories are up 20 to 25 percent compared to a year ago. is facing a major marketing challenge in a fairly challenging marketing landscape.”
An estimated 90 million acres of corn planted this year does not bode well for future corn prices.
“Even if you put that 90 million acre number on the balance sheet, you still have corn inventories that are still growing at the end of the next marketing year.”
Joe Janzen of the University of Illinois.
