Record Yield, Production Forecasts Lower Prices For U.S. Corn
Statement on the USDA WASDE Report From Chip Bowling, President, National Corn Growers Association
“Within recent days, we’ve heard a lot from both Presidential campaigns regarding issues that are important to rural America. We’ve heard opposition to the Trans-Pacific Partnership and attacks on our trade agreements—at the very time that agriculture needs to open new markets. We’ve heard support for expanding the use of renewable fuels—while American farmers are still battling decisions made by the U.S. EPA that undermine biofuels use.
Today’s World Agriculture Supply and Demand Estimates Report should be a wake-up call for both Presidential campaigns regarding the economic challenges facing farmers and rural America.
Rural America needs help. With prices for a number of crop and livestock commodities already below the cost of production, the potential losses in rural America will result in fewer family farms, fewer jobs, and economic hardship. We need real solutions that help us access markets, expand biofuel use, and ensure a more sustainable future.”
August 2016 World Agriculture Supply & Demand Estimate (WASDE)
Increases to the national average corn yield per acre led to higher production and thus lower price forecasts in the Department of Agriculture reports released today. The report, the first of the season with yield forecasts based upon survey data, does indicate increased demand from both the ethanol and export markets.
This report projected increased demand from the feed and residual sector of 175 million bushels due, in large part, to anticipated corn prices. Export forecasts were also raised by 125 million bushels on price-based competitiveness in global markets. Overall, the 300-million-bushel increase did little to offset the more than 600-million-bushel increase in production estimates.
The national average yield forecast was raised 7.1 bushels per acre from the July report. If achieved, the 175.1 bushel per acre yield would set a new record. Accordingly, production would also break previous records at 15.2 billion bushels in the 2016/2017 crop year. Ending stocks are forecast to hit the highest level seen since 1987/1988 at 2.4 billion bushels.
The 2016/17 season-average corn price received by farmers fell and is now projected to be between $2.85 to $3.45 per bushel.
For the full report, click here.
Source: National Corn Growers Association