(Posted Fri. Jan 12th, 2018)
America’s corn farmers are projected to produce a larger corn crop than previously expected according to U.S. Department of Agriculture reports released today. The increased production forecast is the result of increased yield projections, with the national average now projected at 176.6 bushels per acre. This new record-high yield projection accompanies record yield projections from major corn-producing states such as Illinois, Minnesota and Ohio.
"While the range of prices seen rose slightly, it is obvious that America’s farmers have supplied an abundance of affordable, sustainable corn," said National Corn Growers Association Chairman Wesley Spurlock, a farmer from Texas. "Given the incredible resource U.S. farmers supply consistently, it is imperative that we have public policies and farmer-led programs that ensure corn is utilized fully and that America’s farm families can return to a more favorable economic condition.
“From supporting export markets through important trade agreements, such as NAFTA, to growing demand for ethanol at home and abroad, the National Corn Growers Association continues working tirelessly to support policies and grow markets important to corn farmers. Together, we must work to amplify our voice in conversations both on the Hill and across the country to help move our industry forward.”
Production forecasts were raised by 26 million bushels over last month’s report, with the total projected corn production now forecast at 14.6 billion bushels in 2017/2018.
Increased demand for food, seed and industrial use, which was raised by 10 million bushels over last month, was more than offset by a 25 million bushel decrease to demand projections for feed and residual markets. Given rising production and decreased demand forecasts, overall stock projections were raised by 40 million bushels.
Despite the increased supply and decreased demand, the prices expected for the crop rose slightly to a range of between $2.95 and $3.55 per bushel on prices observed to date.
For the full report, click here.