(Posted Mon. Jan 12th, 2015)
The U.S. Department of Agriculture lowered projected national average corn yield and planted acreage estimates this month, while leaving harvested acreage the same. Although projected demand from the feed and residual markets fell, projected demand from the ethanol sector increased. Together, these factors resulted in a lower carryout projection and a 15-cent-per-bushel increased in forecast prices.
“Even in light of these minor reductions, corn farmers across America will still set production and yield records this year,” said NCGA President Chip Bowling, a Maryland corn farmer. “At the same time, the slight rise in prices seen in this report will help farmers hoping to recover the investment they put into this abundant crop. Working together through NCGA and our state associations, we can find innovative ways to grow markets and use this abundance to help our world meet a variety of challenges.”
USDA estimates still indicate record-setting total production at 14.2 billion bushels and a record national average yield of 171.0 bushels per acre, despite being lowered since the previous month. These estimates also set the total supply at approximately 15.5 billion bushels, with estimated use at 13.6. Average farm price estimates were raised to $3.35-$3.95 per bushel.