USDA September 1 corn stock estimates won’t matter, asserts UIllinois Ag economist

September 10, 2014 |

In Illinois, Darrel Good, an Agriculture economist with the University of Illinois Extension, has published an article asserting that the USDA September 1st corn stocks estimates aren’t as important as the previous three years, when “stocks were generally small and the U.S. average corn yield was below trend value.” Said Good, “the market expectation is that the new forecast will be about 250 million bushels larger than the August forecast and that the forecast is likely to be larger again in October, reflecting a U.S. average yield well above trend value.” Because of the large harvest, the stocks of old-crop corn will decrease in relevance.

Good did note some value in the estimates, however: “There will be some information in the September 1 stocks estimate as it will reveal the magnitude of consumption during the final quarter of the 2013-14 marketing year and perhaps provide some insight into the accuracy of the 2013 corn production estimate.“

For the entire 2013-14 marketing year, the USDA has projected feed and residual use of corn at 5.175 billion bushels.

More on the story.

Category: Fuels

Thank you for visting the Digest.