USDA maintains forecast for 2017-’18 corn production

By Erin Voegele | June 09, 2017

The USDA has released the June edition of its World Agricultural Supply and Demand Estimates report, reporting projected corn production for 2017-’18 is unchanged at 14.065 billion bushels. A report released later this month is expected to provide a survey-based estimate of corn planted area and a forecast of area harvested for grain. The season average corn price received by producers is unchanged from last month at $3 to $3.80 per bushel.

The WASDE report indicates EU corn production is down based on government data showing lower-than-expected area in France and Germany. Canada corn production is lowered on reductions to both area and yield, as wetter-than-normal conditions in Ontario and Quebec during May delated plantings and are expected to reduce yield prospects. Ukraine corn production is raised based on reported planting progress to date indicating a level of planted area above previous expectations. Brazil corn production for 2016-’17 is raised as above-normal rainfall in the center-west during May boosted yield prospects. South Africa corn production is higher, reflecting the latest production estimate from the government.

Higher projected corn exports are expected for Ukraine and Russia, with increased corn imports for the EU. Foreign corn ending stocks are lowered from last month, with reductions for Canada, the EU and Russia more than offsetting increases for South Africa and Ukraine.