AS CORN CROP PROJECTIONS RISE, PRICE PROJECTIONS FELL

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(Posted Fri. Nov 8th, 2013)

Nov. 8: U.S. farmers will produce a record corn crop even larger than previously expected if forecasts hold, according to U.S. Department of Agriculture estimates released today. The projected harvest raised by 146 million bushels to 13.98 billion bushels as the yield forecast rose by 5.1 bushels per acre to 160.4 bushels per acre. If realized, U.S. corn farmers would exceed the production record set in 2009 of 13.09 billion bushels.

 

“While the record crop clearly demonstrates that U.S. corn farmers are poised to meet demand from all users, this abundance has produced a difficult situation for many farmers as prices continue to drop,” said National Corn Growers Association President Martin Barbre, a farmer from Carmi, Ill. “According to information released by the University of Illinois, many growers are finding prices lower than their cost of production at this point. It is imperative that we work diligently to build and maintain markets so that U.S. corn can be utilized as the amazing national resource that it is, providing food, feed, fiber and fuel for our nation and the world.”

 

For more information on corn break-even prices, click here.

 

Total production projections were raised from two months prior by 146 million bushels to 13.98 billion bushels total. A report was not issued for October due to the partial government shutdown. The projected yield was raised by 5.1 bushels per acre to 160.4 bushels per acre, reflecting reports from field surveys. Notably, if achieved, this would be the second highest national average corn yield on record.

 

Corn beginning stocks projections were raised by 163 million, and ending stocks were raised by 37 million bushels. Feed and residual projections raised by 100 million bushels and now sit 300 million bushels higher than ethanol use projections. Export projections were also raised 175 million bushels.

 

The report adjusted projections for both harvested and planted acres lower with planted acres revised down by 2.1 million acres and harvest revised down by 1.9 million acres. This adjustment reflects acreage put into preventive planting due to the wet spring planting conditions. The season-average farm price, now projected 30 cents lower at each end to $4.10 to $4.90 per bushel, continued to fall sharply from the record $6.70 to $7.10 the prior year.

 

For the full report, click here.