High corn prices are expected to stay through the Fall harvest. That is according to USDA’s Supply & Demand forecast.
It is good news for farmers as input prices continue to soar. The Department predicts planted acres to be down 4 million from last year, with harvested acres also down 4 million. The slow planting pace is keeping yields steady.
The Outlook Board Chair says a smaller crop could cause ending stocks to shrink and set producers up to get higher prices.
“Just under 14.5 billion bushels. That’s down from last year - last year’s crop came in at 15.1 billion bushels.”
As for wheat, USDA says the drought has caused the highest abandonment since 2002. The winter crop, which accounts for most of U.S. production, could end up eight percent smaller than last season, but prices are expected to remain high at $3 more per bushel than the current season, and most of the crop will be marketed early.
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