The U.S. Department of Agriculture’s WASDE report released today has corn production forecasted at 14.280 billion bushels, up 96 million from last month. Corn supply remains unchanged despite yield again being raised by almost a bushel to 171.8. The yield increase was offset by an adjustment in acreage planted and lower stocks. Lower planted acres likely reflects more accurate accounting of spring weather difficulties. Corn price projections also remain unchanged from last month’s report, with the average projected range at $2.80 to $3.60 per bushel.
From a global perspective, corn stocks are down 1.5 million from last month, with foreign corn ending stocks for 2017/18 down, due to declines from China and Mexico.
Ethanol use rebounded from its projected drop last month, with numbers back at August levels of 5.5 billion bushels. Price remains unchanged, thus reflecting the need for new markets and new uses to be developed.
On the soybean side of the ledger, it looks similar but in reverse. With increased acreage the yield was lowered from last month’s bump back down to 49.5 bushels. Beginning stocks were lowered, reflecting a 44-million bushel reduction in total supply. Prices also remain unchanged.