Source: Rita Jane Gabbett, MEATINGPLACE, 7/12/17


This month’s 2017-18 U.S. corn outlook is for larger supplies, greater feed and residual use, and higher ending stocks, according to USDA’s latest World Agricultural Supply and Demand Estimates report. 

Consequently, USDA lowered its forecast of the season average corn price received by producers by 10 cents at the midpoint for a range of $2.90 to $3.70 per bushel.

Wall Street analysts in recent weeks had expressed concern about rising corn prices, which had recently climbed above $4 per bushel in the face of hot, dry conditions in some growing areas. The analysts pointed to potential impact on input costs for meat companies. Rains have since occurred in at least some key growing areas. Corn futures were trading down about 8 cents per bushel in morning trade on the Chicago Board of Trade.

USDA raised its corn production forecast for 2017-18 by 190 million bushels, based on increased planted and harvested areas from the June 30 Acreage report.

Soybeans
U.S. soybean production is projected at 4.26 billion bushels, up 5 million on increased harvested area. Despite slightly higher production, 2017-18 soybean supplies are reduced by 35 million bushels on lower beginning stocks and strong exports.

Soybean exports for 2016-17 are projected at 2.1 billion bushels, up 50 million, reflecting shipments and outstanding sales through early July.

The U.S. season-average soybean price is forecast at $8.40 to $10.40 per bushel, up 10 cents at the midpoint. Soybean meal prices are forecast at $300 to $340 per short ton, up $5.00 at the midpoint.

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