Will projected corn yields go even lower?

August 27, 2012 |

In Minnesota, Piper Jaffray’s Michael Cox offered an update on the US drought and corn harvests: “With the Pro Farmer Midwest Crop Tour wrapping up this week, we believe there is modest downside risk to the USDA’s most recent corn yield forecast of 123 bushels per acre.

“Based on the Pro Farmer state-level corn yield estimates and our estimates for the remaining top 5 corn producing states, which combine to account for 85% of U.S. corn acreage, we believe a national average yield in the 116-119 bushel/acre range is more realistic than the USDA’s August WASDE forecast of 123 bu/acre. With corn prices above $8 per bushel, we believe a slightly lower corn yield forecast relatively to the August WASDE is largely priced in at this point, but does provide support to these elevated prices.”

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Category: Fuels

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