The projected range of the season-average corn price has been dropped by 20 cents to $3.65 to $4.35 per bushel as favorable weather for the developing crop reduced summer price prospects.

According to the USDA’s latest World Agricultural Supply and Demand Estimates (WASDE), 2014 corn production was lowered by 75 million bushels to 13.86 billion bushels based on harvest acres reported in last month’s Acreage report.  This is just 65 million bushels below last year’s record-setting corn production.

The USDA left national average corn yield forecast unchanged at a record 165.3 bushels per acre. A favorable outlook for crop conditions and weather in early July support these record yields; however, an uncertain weather outlook remains for the critical pollination period during mid- to late-July.

The USDA also projected lower corn feed and residual use.  

 “Projected corn feed and residual use is lowered 125 million bushels based on lower-than-expected March-May disappearance as indicated by the June 1 stocks,” the report said.  “Corn used to produce ethanol is projected 25 million bushels higher based on the pace of ethanol production to date and lower projected sorghum food, seed, and industrial use, most of which is for ethanol.”

Soybeans: Record production expected
The USDA’s report also showed high soybean production, projected at a record 3.8 billion bushels. This is up 165 million bushels from last months’ report on increased harvested area.

June’s Acreage report showed record high soybean acreage at 84.1 million acres. If realized, this will break the previous record high by more than 7.4 million acres.

The projected soybean yield is unchanged at 45.2 bushels per acre. The U.S. soybean ending stocks are expected to reach 415 million bushels, up 90 million and the highest since 2006-2007 if realized.

Prices for soybeans were reduced from last months’ report. The season-average soybean price is expected to range between $9.50 and $11.50 per bushel. Soybean meal and oil prices are also reduced.  

Click here to read the full WASDE report.