Today’s World Agricultural Supply and Demand Estimates (WASDE) report released by the U.S. Department of Agriculture predicts a record 13,989 million bushel corn yield in 2013.
A significant reduction in harvested acres is offset in this estimation by a 5.1 bushel per acre increase in the forecasted yield. USDA predicts a 160.4 bushels per acre yield, leaving the national average yield 4.3 bushels per acre lower than the record in 2009.
It seems that when farmers tell consumers and elected officials that they CAN produce for livestock feed and a growing ethanol market, they aren’t kidding.
“That U.S. corn farmers will produce about 14 billion bushels of corn this year is both exciting and scary,” said Illinois Corn Growers Association President Paul Taylor. “It’s exciting to see what innovation and technology can do for us in terms of producing more with less, even in seasons with less than optimal climatic conditions. It’s scary to see farmers harvest a record setting crop, and also see the U.S. EPA consider reducing our ethanol market opportunities in the same time frame.”
Carryout from the 2012 crop year was also increased in today’s report, leaving the total U.S. corn supplies for 2013/14 at 14,837 million bushels. The report also forecasts ending stocks for 2013/14 at 1,887 million bushels which is 32 million bushels higher than the previous forecast.
This is the first time in the last ten years that we have seen ending stocks so high.
“Sadly, prices are going to respond to these extremely high forecasted yields. The report predicts $4.10 for season average corn price which is below the cost of production for many Illinois corn farmers,” said Taylor.