With the U.S. Department of Agriculture’s important crop production and supply-and-demand reports due to come out Tuesday, the weekly crop progress report released today shows that corn is holding steady, with 73 percent of the crop rated good or excellent (as of August 10), 20 percent fair and 7 percent poor or very poor. Last year at this time, 64 percent of the corn crop was rated good or excellent. “Except for a few areas, corn growers are seeing a good crop come in,” said NCGA President Martin Barbre, a corn grower in Illinois. “This perceived abundance can drive corn prices down even further, below the cost of production in some cases. And this is why it’s critically important that we not take any action that negatively impacts the markets for corn any further, such as cutting the Renewable Fuel Standard, or that drives up the cost of production, such as overly burdensome regulations. At the same time, modernized trade promotion authority legislation would improve our nation’s ability to advance trade agreements that open markets for U.S. farmers.”
The crop progress report also tracks the stages of corn crop growth, with 96 percent silking, 54 percent in the dough stage and 11 percent dented, compared to a five-year average of 95, 46 and 16 percent, respectively. Click here for an explanation of the stages.
In last month’s supply-and-demand report, USDA projected 2014 U.S. corn production at 13.86 billion bushels, based on harvested acres from the June 30 Acreage report, with the national average corn yield projected at a record 165.3 bushels per acre. Both these numbers are widely expected to rise in tomorrow’s reports, with a new record crop signaling a further possible reduction in corn prices.
Click here for the whole report on crop progress. USDA’s report on supply and demand will be released at 11 a.m. CDT Tuesday.