Prices fall as US corn production soars

The Department of Agriculture report released July 12 forecast a higher crop yield and therefore, lower prices for United States corn this year.

Despite an increase in demand for corn, the estimated price for corn dropped 10 cents from 2015-16 to $3.40 per bushel for the 2016-17 crop year.

“While NCGA is pleased with increased demand from the export sector, it is evident that far greater gains must be made in generating additional demand from all sectors if we are to ensure the continued profitability of U.S. family farmers,” National Corn Growers Association President Chip Bowling said. “To grow these markets, farmers need the help of our federal legislators and regulators. Farmers need the EPA to step up and comply with its statutory obligations under the Renewable Fuel Standard. We need Congress to help us push export demand even further by opening new markets by passing the Trans-Pacific Partnership and lifting the Cuban Trade Embargo. We must work together to generate the demand America’s rural communities and farm families need to thrive.”

There is also an increased interest in export demand because of less competition from Brazil. The export forecast is for 100 million more bushels to a total of 2.05 billion bushels. If the forecast is accurate, it would be the first time since 2007/2008 that corn exports have exceeded 2 billion bushels.

This planting season saw an increase in planted and harvested acreage after the release of the acreage report last year.