View of field of cord seedlings in springWith fewer corn acres expected and renewed demand for ethanol, the corn market rose sharply higher this past week. U.S. ethanol inventories are estimated anywhere from 25 million barrels to 25.8 million barrels, slightly down from the week of 4/4. Production could fall in below one million bushels daily for the first time since early February.

The situation in Ukraine remains a significant contributor to market uncertainty, along with dry conditions in Brazil impacting the country’s corn crop. All these pressures mean a tight supply for the grain and put pressure on producers to maintain record-high yields. But with record-high input costs and continued weather challenges throughout the country, worries persist on U.S. farmers’ ability to meet demand.

Read more on corn supplies and production here.