The U.S. corn industry may see strong, but not record setting, production according to U.S. Department of Agriculture reports released today. With increased domestic demand offset by lower export forecasts, corn use is projected to see high, but not record, levels at 14.3 billion total bushels in 2017/18.
This report, the first forecasting overall U.S. corn supply and demand for the next marketing year, projected ethanol use to increase 50 million bushels from the previous year due, in part, to increased fuel consumption and decreased use of sorghum as a feedstock. Projected feed and residual use is 75 million bushels lower than the previous year as ethanol co-products continue to play an important role in livestock feed markets. In addition, USDA is projecting U.S. corn exports to decrease by 350 million bushels next year due to strong competition from Argentinian and Brazilian suppliers.
At the same time, U.S. corn farmers could produce the third-largest corn crop on record if projections hold. This comes as yield estimates forecast a national average of 170.7 bushels per acre, also the third-highest corn yield in U.S. records.
Ending stocks are expected to reach 2.11 billion bushels, slightly lower than the record set the previous year. The 2017/18 season-average corn price received by farmers is projected to be between $3.00 to $3.80 per bushel, a wider range than normally projected.
For the full report, click here.
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