(Posted Fri. Jun 10th, 2016)
Increases to U.S. corn export forecasts led to higher price forecasts in the Department of Agriculture reports released today. With a 50-million-bushel increase to the export sector, corn price forecasts for the 2016/2017 crop year increased 15 cents to $3.50 per bushel.
“NCGA is pleased that demand from the export sector continues to grow and, thus, prices are rising slightly. At the same time, we know that this trend must continue at an accelerated pace.” said National Corn Growers Association President Chip Bowling, a farmer from Maryland. “Farmers need the EPA to step up and comply with its statutory obligations under the Renewable Fuel Standard. We need Congress to help us push export demand even further by opening new markets by passing the Trans-Pacific Partnership and lifting the Cuban Trade Embargo. As this month’s report demonstrates, even small increases to demand can have an impact on prices. Working together, we can make each small impact add up to a real, necessary boost for farm families.”
This report projected increased exports in light of improved relative competitiveness with other exporting nations. Notably, this report also marked the first time that U.S. corn export commitments surpassed the levels seen at that period the year prior. This led to a decrease in the ending stocks forecast, which now sits at roughly two billion bushels.
The 2016/17 season-average corn price received by farmers rose and is now projected to be between $3.20 to $3.80 per bushel.
Forecasts have not changed and continue to indicate a record crop with overall production reaching 14.4 billion bushels if achieved.
For the full report, click here.