/ckeditor/kcfinder/upload/files/Corn-and-Soybean-Elevator-Outlook_-Strong-Dollar-and-Policy-Uncertainty-Cloud-Outlook-for-Demand---CoBank-Site---CoBank.pdf

Key points

• The U.S. harvested the second-biggest corn and soybean crop on record this fall, improving carries in the futures market and lifting the margin outlook for grain elevators storing corn and soybeans.
• The dry harvest conditions this fall lowered the moisture content of both the corn and soybean crops, improving storability of the crops but costing grain elevators drying revenue.
• Feed usage remains robust for both corn and soybeans with steady numbers of beef cattle on feed, hogs, pigs and chick placements.
• Biofuel demand for corn and soybeans has experienced tremendous growth but faces headwinds from weakening profit margins and policy uncertainty going into the next administration.
• Export demand has been robust for corn and soybeans, but a strong dollar, potential record-large corn and soybean crops in South America and volatile trade policy could cloud the export outlook.