The annual Acreage report released last week by USDA-NASS included larger-than-expected corn acres which put downward pressure on corn prices. The report listed corn acres at 91.5 million acres which is 1.4 million acres higher than the March Prospective Plantings report projected. After corn prices surpassed $6 for the 2022/23 marketing year, prices are below $5 for the current marketing year, and are projected to be closer to $4 for the 2024/2025 marketing year.
While higher than previously projected, corn acres will be slightly lower than 2023 totals. However, advantageous growing conditions are supporting higher yield expectations when compared to 2023. The latest WASDE report included a yield estimate of 181 bushels per acre which would be higher than the 177.3 from a year ago. Stronger yields could lead to corn production for 2024 not being far off from the 2023 total.
Josh Maples
July 2, 2024
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