Corn Production Lower Than Expected
With harvest underway at a slower pace amid a set of weather challenges, The U.S. Department of Agriculture slightly lowered expected corn production this year, to 14.4 billion bushels.
While this is slightly lower than last month's report, it still represents a 3 percent increase over 2013. Yield was reduced to 173.4 bushels per acre.
National Corn Growers Association President Chip Bowling tells us,
We've had many reports of bin-busting harvests throughout the heartland. As farmers are working to find storage for record crops and dealing in some areas with transportation issues, we're delighted to see a slight increase in demand and reduction in forecast ending stocks. Along with this, we're seeing prices bump up slightly.
USDA estimates total supply at 15.7 billion bushels, with estimated use at 13.7, leaving ending stocks of 2.0 billion bushels. Average farm price, reported as a range, was increased a dime to $3.20-$3.80 per bushel.