(Posted Tue. Jan 12th, 2016)
With corn demand estimates lowered by 60 million bushels and U.S. corn supply lowered slightly by just over 40 million bushels, farmers can expect about five cents less per bushel according U.S. Department of Agriculture reports released today. While planted acres were revised slightly downward, harvested acreage remained the same. National average yield was also reduced 0.9 bushels to 168.4. The demand estimates were revised to reflect ongoing sluggishness in export markets and lowered expectations of demand from for sweetener production.
“The abundance we have produced this year, set to be the third-largest corn crop on record, demonstrates the prowess and determination of American farmers,” said National Corn Growers Association President Chip Bowling, a farmer from Maryland. “Yet, this prowess and dedication must also be applied to our efforts to create and grow demand for our crop in order to ensure a strong future for the industry. American farmers produce a sustainable, bountiful corn crop that can feed and fuel the world. At NCGA, we are working tirelessly to make sure both consumers and federal regulators and legislators realize the opportunities rural America provides.”
Yield projections fell slightly since December, now showing a national average of 168.4 bushels per acre, which, if achieved, would still be the second-highest on record. While lower yield estimates reduced the production estimate slightly, falling demand more than offset the reductions. Ending stocks are now expected to reach 1.8 billion bushels, their highest level since the 2006 crop year.
Export estimates were lowered by 50 million bushels due to increased competition from Brazilian and Ukrainian producers coupled with a strong dollar.
Despite overall lower estimated demand, the 2015/16 season-average corn price received by farmers is projected five cents lower at each end, to the $3.30 to $3.90 per bushel range.