USDA released a slew of reports this week over potential acreage production and grain stocks.
In its Prospective Plantings report, USDA said Corn planted area for all purposes in 2020 is estimated at 97.0 million acres, up 8 percent or 7.29 million acres from last year. Compared with last year, planted acreage is expected to be up or unchanged in 38 of the 48 estimating States.
It’s a big number when you look at gas prices and ethanol demand. Some ethanol plants are temporarily closing some facilities due to COVID 19, the oil war overseas, oil prices and ethanol demand.
“In reality, the weekly Energy Administration Information (EIA) [numbers show] we should start seeing a 13% type reduction in those weekly numbers,” says Garrett Toay with AgTraderTalk. “Based off the numbers we’ve looked at, we’ve got about 750 million bushels of vandalized ethanol that’s either idled or offline.”
Watch more of the AgDay analysis with Clinton Griffiths and Garrett Toay here.