Unprecedented planting delays seriously impacted corn crop forecasts issued today by the U.S. Department of Agriculture in the World Agricultural Supply and Demand Estimates. With the forecast number of acres both planted and harvested both revised down by three million acres and national average yield revised downward by 10 bushels-per-acre from last month, current forecasts show U.S. farmers producing the smallest corn crop since 2015/16 at 13.7 billion bushels.
In light of lowered production, and despite decreased demand, the season-average farm price raised by 50 cents over May estimates to $3.80 per bushel. While production forecasts were lowered, ending stocks are still forecast to exceed 1.6 billion bushels given the more than 2 billion bushels of beginning stocks forecast.
Export market demand forecasts were lowered by 100 million bushels. While price competitiveness and current outstanding sales caused export forecasts to lower, the ratification of trade deals such as the U.S.-Mexico-Canada Agreement would be a solid step toward stabilizing export markets for corn farmers.
Notably, the Acreage report to be released on June 28 will provide survey-based indications of planted and harvested area.