Could corn drop below $4? USDA says ‘maybe’

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Corn On Friday, the USDA pegged corn production tentatively at 13.9 billion bushels in the monthly World Agricultural Supply and Demand Estimates report, up slightly from the 2013-2014 record as higher expected yields more than offset the decline in planted area.

In the report, the USDA forecast corn yield at 165.3 bushels per acre, up 6.5 bushels from 2013-2014. The season-average farm price was projected lower, with a range falling to $3.85 and $4.55 per bushel. This is down from last month’s projected range of $4.50 and $4.80 per bushel.  

Corn supplies for 2014-2015 were also projected 330 million bushels higher at 15.1 billion bushels.

“U.S. corn use for 2014-15 is projected 2 percent lower than in 2013-14,” the USDA said in the WASDE report. “Feed and residual use is projected 50 million bushels lower with animal numbers down from 2013-14. Exports are projected 200 million bushels lower than this month’s higher projection for 2013/14 as larger expected foreign supplies and lower import demand limit U.S. shipments. Corn used to produce ethanol in 2014/15 is expected to be unchanged on the year with gasoline consumption expected to remain flat in 2015. Corn ending stocks are projected at 1.7 billion bushels, up 580 million from the 2013/14 projection.”

Globally, the USDA anticipates a record 979.1 million tons of corn to be produced for 2014-15, unchanged from 2013-14. Global corn trade is projected lower with imports projected down year to year for China and Mexico.

The USDA projects a record 3.635 billion bushels of soybeans to be produced this year, up 346 million from the 2013 crop on record yields and harvested area. Soybean yield is projected up 1.9 bushels from 2013 at 45.2 bushels per acre.

Like corn, the U.S. season-average soybean price for 2014-2015 is forecast to sink between $9.75 and $11.75 per bushel.

“U.S. soybean exports are projected at 1.625 billion bushels, up 25 million from 2013-14 on record supplies and competitive prices,” the USDA wrote. “Despite gains in use, ending stocks for 2014/15 are projected at 330 million bushels, up 200 million from 2013/14, increasing the stocks-to-use ratio to 9.6 percent.”

Click here to read the full WASDE report.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

Demco 1400 Grain Cart

Demco offers a 1400 bushel grain cart to provide unmatched efficiency and operator convenience. In addition to the large 1400 ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form