(Posted Fri. Sep 11th, 2015)
A decrease in production estimates resulted in increased forecasts for corn prices paid to farmers according U.S. Department of Agriculture reports released today. Lower estimates of the projected national average yield and higher projected demand from the food, seed and industrial market also impacted price projections.
“What is important to note in the yield projections is that, at this time, the reports are reflecting the reality farmers are seeing as harvest begins,” said National Corn Growers Association President Chip Bowling, a farmer from Newburg, Md. “With the October and November reports, I expect we will see further revision to these important yield numbers as additional harvest information will be available. The good news is that production remains strong, but the price paid farmers is moving in a more equitable direction. As farmers work hard at harvest, they can know NCGA is working hard to grow demand for their growing crop.”
While usage was lowered by 20 million bushels, it remains on track to set a record in 2015/2016, surpassing use for 2014/2015. Demand for corn use in sweeteners continues to increase at this time also.
With both ending stocks and carryout projections lowered by more than 100 million bushels, the 2015/16 season-average corn price received by farmers is projected 10 cents higher on both ends to $3.45 to $4.05 per bushel.
For the full report, click here.