January U.S. corn estimates.

The USDA made modest changes in the corn 2019/2020 supply/usage estimates this month. The feed estimate was raised to 5.5 billion bushels from 5.35 billion the previous month and 5.6 billion bushels a year ago. The U.S. hog herd was up 3% on December 1 and broiler production  is running 5% ahead of last year.

The current crop year corn estimate was cut by 50 million bushels. U.S. corn 2019/20 export sales have lagged previous years as importers have elected to reduce burdensome corn stocks.

We have plotted the high for cash corn against the U.S. corn carryout to usage ratio which was 13% assuming the USDA ‘s January estimates.