(Posted Wed. Jun 10th, 2015)
In its monthly report on world ag supply and demand, the U.S. Department of Agriculture held forecasts for production and use steady from last month while beginning and ending stock were raised. With prices also steady, the outlook for corn farmers remains largely unchanged from May.
USDA projects beginning stocks of 1.87 billion bushels, a 25-million-bushel increase. The revision, the result of a reduction of the forecast corn use in ethanol reduction for 2014/2015, is based on data reported in the Grain Crushings and Co-Products Production report through April. In turn, as demand for 2015 was not revised, the ending stocks and total supply forecasts increased by the same amount.
Forecasts continue to show farmers planting 89.2 million acres and harvesting 81.7 million acres, with an average yield of 166.8 bushels per acre and production of 13.6 billion bushels, down from 2014 corn production of 14.2 billion bushels.
Despite total supply and ending stocks revisions, USDA continues to estimate the average farm price for the current market year at $3.55 to $3.75 per bushel, and a broader range of $3.20 to $3.80 for the next market year, which begins Sept. 1.