(Posted Fri. Oct 9th, 2015)
A second month of decreased production estimates resulted in another increased forecast for the corn price paid to farmers according U.S. Department of Agriculture reports released today. While the national average yield projections were raised by half of a bushel per acre, decreased projections for both planted and harvested area impacted production and supply figures and, given steady demand projections, raised price estimates for the 2015/2016 corn crop.
“With corn harvest more than a quarter complete across the country, we are beginning to get a clear vision of what the final crop might look like but, as much of the northern Corn Belt has yet to harvest, things could still change,” said National Corn Growers Association President Chip Bowling, a farmer from Newburg, Md. “While the estimate of the crop size will be ample enough to meet all needs, the price paid farmers is moving in a more equitable direction. While farmers work late nights harvesting their fields, they can remain confident that NCGA is working hard to grow demand for their growing crop.”
Usage, which held stead, remained on track to set a record in 2015/2016, surpassing use for 2014/2015.
With both ending stocks and carryout projections lowered by 30 million or more bushels, the 2015/16 season-average corn price received by farmers is projected five cents higher on both ends to $3.50 to $4.10 per bushel.