The condition of the U.S. corn crop this week remains unchanged from last week’s 76% good to excellent, so corn continues to progress and get timely rains. Indiana’s corn rating is at 77% good to excellent. The crop in the Midwest looks very good and that may very well mean some really low prices for farmers. The operative word for the 2016 corn crop is BIG says University of Illinois agricultural economist Darrel Good. Good says there are plenty of acres of corn around the nation, and that the weather, while unique, has set the stage for an above-trend-yield bumper crop.
“I’m thinking we’re looking at a corn crop probably close to 15 billion bushels this year, and even with some increase in consumption, kind of across the board in the feed market, export, ethanol, that’s not going to prevent a buildup in stocks, probably approaching 2.5 billion bushels by the end of the 16-17 marketing year, and that points to continued low corn prices for another year.”
Good says this could mean prices in the low $3 range which could lead to a nationwide average cash price for the whole season of $3.35 or $3.40 a bushel.