Corn crop yields seen returning in 2020 to push down feedstock prices

In Texas, Platts reports that the total corn acreage planted in 2020 will be a key factor in next year’s ethanol market, as farmers look to potentially expand acreage for corn while reducing for soybeans in the face of ongoing trade wars and that the planting window for corn is wider than for beans. The weather has been very poor for corn during the last two seasons, so some believe the odds are against having a third poor year in a row. With more acres and a return to high yields, corn prices could plummet and in turn favorably impact ethanol crush margins.