The University of Illinois reports that USDA projections put corn and soybean supplies at or near record levels for the 2016-17 marketing year that begins on September 1.
“The corn supply (production, carryover stocks, and imports) is projected at 16.909 billion bushels, 1.512 billion bushels larger than last year's supply and 1.43 billion bushels larger than the record large supply of two years ago,” Darrell Good, professor of economics at the University of Illinois said in the article. “The soybean supply is projected at 4.346 billion bushels, 201 million larger than the record supply of last year.
“Average harvest time bids for soybeans in south central Illinois are near $9.90 per bushel, above the upper end of the range of the U.S. average farm price projected by USDA for the 2016-17 marketing year,” Good said. “The relatively high price, strong basis, and inverted futures market discourages storage of the 2016 crop. For those who anticipate even higher prices, ownership in the form of futures or basis contracts is likely much less expensive than commercial storage, and may be less expensive than using existing on-farm facilities.”
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