Corn Yields Dramatic Change Impacting Markets

The most recent corn forecast included a dramatic bump in expected production by the U.S. producers which the market has had to adjust to.

USDA Outlook Board Chair Seth Meyer said it was a change that likely surprised a lot of analysts and producers since it will be the second highest production year for corn ever.

Meyer noted it’s disappointing where they had been some possible good news for producers who are concerned about prices dropping.

“Shrinking the Ukranian’s crop by two million metric tons. Shrinking the Mexican’s sorghum crop by a little over a million metric tons. So that means less competition, but it’s overwhelmed by 300 million bushels of extra production.”

The USDA is forecasting prices to stick around $3.20 per bushel, down 16 cents from last year.