USDA increased 2017/18 production for corn and soybeans, due to increased planted and harvested acres per the June 30 Acreage report. Yet, the agency left yields unchanged for both crops.
This month’s 2017/18 U.S. corn outlook is for larger supplies, greater feed and residual use, and higher ending stocks. Corn beginning stocks are raised 75 million bushels reflecting lower feed and residual use in 2016/17 based on indicated disappearance during the first three quarters of the marketing year in the June 30 Grain Stocks report.
Corn production for 2017/18 is projected 190 million bushels higher based on increased planted and harvested areas from the June 30 Acreage report. The national average corn yield is unchanged at 170.7 bushels per acre.
During June, harvested-area weighted precipitation for the major corn WASDE-567-2 producing states was below normal but did not represent an extreme deviation from average. For much of the crop the critical pollination period will be during middle and late July.
Projected feed and residual use for 2017/18 is raised 50 million bushels on a larger crop and lower expected prices. With other use categories unchanged, corn ending stocks are raised 215 million bushels from last month. Small revisions are made to historical trade and utilization estimates based on the 13th month trade data revisions from the Census Bureau.
The season-average corn price received by producers is lowered 10 cents at the midpoint for a range of $2.90 to $3.70 per bushel with the larger carryout.<...