USDA’s World Agricultural Supply and Demand Estimates report for June sharply lowered the forecast for U.S. corn production this year.
Corn production for 2019/20 is forecast to decline 1.4 billion bushels to 13.7 billion, which if realized would be the lowest since 2015/16.Unprecedented planting delays observed through early June are expected to prevent some plantings and reduce yield prospects. USDA will release its Acreage report on June 28, which will provide survey-based indications of planted and harvested area. With sharply lower supplies, use is projected to decline 425 million bushels to 14.3 billion, based on reductions to feed and residual use and exports. With supplies falling more than use, ending stocks are projected to decline 810 million bushels to 1.7 billion, which if realized would be the lowest since 2013/14. The season-average farm price is raised 50 cents to $3.80 per bushel.
The latest crop progress report shows corn planting most delayed in Ohio (50%), Michigan, South Dakota, Indiana, and Illinois. In Iowa, where this photo was taken this week, 93 percent of the crop is in the ground, but only 73 percent is emerged and half of that is rated fair to very poor.
Yesterday’s MGEX Crop Report Conference Call featured commentary on the report from Randy Martinson of Martinson Ag Risk Management. Listen here.