Everett Griner talks about the corn crop and market in today’s Agri View.
Corn and the Market
Just recently I had a report that stated that the United States produces half of the corn in the world. Now you might wonder why when prices fluctuate so much from year to year. But here we go again. Early reports indicate that growers planted ninety three million acres of corn this year. Harvest is now on the way and when it is over we should have about the same size crop we had last year. Since acreage was up that means the yield will probably be the same as last year. But not enough to affect the market price range already projected. Farmers know that market time is not the best time to sell their crop. That is why of it goes into storage until the trend starts to develop. So, what does it look like for this year? Experts won’t say but growers are willing to wait and watch the futures market. That is what they do anyway.
That’s Agri View for today. I’m Everett Griner.
From: USDA Economic Research Service
Feed Outlook
by Tom Capehart and Stephen MacDonald, USDA (published August 16, 2016)
Record Projected Corn Yield and Production for 2016/17
Excellent growing conditions have resulted in a 613-million bushel increase in the 2016/17 corn crop. The August Crop Production report from USDA’s National Agricultural Statistics Service forecast the national corn yield at 175.1 bushels per acre, 7.1 bushels above last month’s weather-adjusted trend projection and 4.1 bushels higher than the previous record of 171.0 bushels per acre. With the harvested area forecast unchanged at 86.6 million acres, the resulting production is 15.2 billion bushels, 938 million above the previous high in 2014/15.
Total use is forecast 300 million bushels higher on the lower price to 14,500 million bushels. If realized, this would be record-high use and 752 million bushels above the prior record in 2014/15. Feed and residual use is projected up 175 million bushels to 5,675 million and exports are projected up 125 million bushels to 2,175 million. The 2016/17 season-average farm price for corn is projected at $3.15 per bushel, 25 cents below last month and the lowest since 2006/07.
USDA’s world coarse grain production forecast for 2016/17 is raised 1.5 percent in August, and production is now expected to marginally surpass its 2014/15 record as it rises 6.0 percent from the year before. World coarse grain trade for 2016/17 is forecast higher in August, up 1.9 percent to 173.2 million tons. World corn trade in 2106/17 is expected to total 133.7 million tons, down 2.2 percent from the year before but the second highest ever.
Read more. (.pdf)