TWO dates in January should eventually prove pivotal for the U.S. grain and oilseed markets. USDA slashed demand for corn on Jan. 12, cutting overall usage by 585 million bushels in two months — equal to 4 million acres of production. The move appeared to take the teeth out of this spring's crop acreage battle, with corn no longer needing to gain acres as long as yields reached normal levels. However, the acreage battle was given new life nine days later on Jan. 21 when Argentina quietly cut corn and soybean acreage estimates for the current year due to intensifying drought conditions. The market didn't fully grasp the impact at the time, but the adjustment should eventually prove critical for giving new life to this year's commodity markets.
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