Tightening global corn supplies should make feed barley more competitive in feedlot alley in 2026-27, say analysts.
December corn futures rallied nearly 74 cents per bushel in August as it became clear that the U.S. crop would not be as big as once anticipated.
The U.S. Department of Agriculture’s first surveyed corn yield estimate is 180.7 bushels per acre, 5.8 bu. per acre smaller than last year’s crop.
Fifty-seven per cent of the crop was rated good to excellent as of Aug. 30, compared to 69 per cent the same time last year.
WHY IT MATTERS: Canadian feed barley prices are closely tied to U.S. corn values.
GrainFox chief market analyst Neil Townsend thinks the U.S. corn crop is trending toward a final yield of 176 bu. per acre.
“That’s very, very bullish for corn,” he said.
Some analysts he respects think the average yield could drop as low as 170.
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