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A closer look at USDA’s corn and wheat projections

The USDA decreased corn exports and increased wheat exports in their February supply and demand report.

Acting ag outlook board chair Mark Jekanowski says they pulled the export forecast for corn back by 50 million bushels, putting that estimate 340 million bushels below last season.

“That just reflects a lot of competition from other suppliers.”

He says about 40% of the current corn crop has been marketed at an average price of $3.75 per bushel. He says they project a $3.85 average price for the marketing year, which would be 24 cents higher than last year.

On the other hand, Jekanowski says they increased wheat exports to 1 billion bushels, about 64 million more than last year. He says they are also projecting the smallest ending stocks level in five years.

“Increasing use, increasing global demand, increasing exports is all good for the industry.”

He says this late in the marketing year that did not change the season average price of $4.55 per bushel, 61 cents less than last year. USDA says 72% of the crop is already sold at an average price of $4.52.