With corn overall demand estimates lowered by 24 million bushels and U.S. corn ending stocks raised by 25 million bushels, farmers can expect about slightly less per bushel according U.S. Department of Agriculture reports released Tuesday. While production estimates were unchanged from March and the report indicates increased demand for ethanol, those gains are more than offset by a major increase in feed and residual demand.
“U.S. corn farmers have indicated their intention to grow another bountiful crop in 2016 and, if the weather proves favorable, we may see a large corn supply after harvest,” said National Corn Growers Association President Chip Bowling, a farmer from Maryland. “At NCGA, we work to apply the same expertise and and dedication shown by our members to our efforts to create and grow demand for our crop. America’s farmers sustainably produce a corn crop that can feed and fuel the world. Working together, we can create the opportunities necessary to maximize the potential of this great resource and build a solid future for our farm families as well.”
Ending stocks are now expected to reach 1.86 billion bushels, their highest level since 2005. The May report will include USDA’s first projection for the 2016-2017 corn crop.
Feed and residual demand estimates were lowered by 50 million bushels reflecting indicated disappearance through the first half of the marketing year. An increase of 25 million bushels to projected demand for ethanol use, which was based upon information from the Energy Information Administration, slightly offset the impact on overall demand.
With overall demand decreased, the 2015/16 season-average corn price received by farmers is projected ten cents lower at the top end, with a range of $3.40 to $3.70 per bushel.
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