The USDA’s prediction for larger corn yields and larger ending stocks last week did not help Illinois farmers a bit, as futures prices dropped considerably.
The corn production forecast is up 356 million from July at 14.6 billion bushels. USDA predicts that Illinois, Indiana, Nebraska, Ohio, North Dakota, and South Dakota will beat their 2017 average yield, bringing the U.S. average to a forecasted 178.4 bushels per acre. The yield for Iowa is unchanged relative to last year.
The forecast does include an increase in feed use, residual use, and exports; however, supply will still rise faster than use and ending stocks are forecasted at 1.7 billion bushels. This is an increase of 132 billion bushels from last month.
The season average corn price is down 20 cents.