Highlights
The USDA lowered old corn carryout 120 million bushels below the lowest estimate by increasing feed use and exports both by 75 million bushels each. Old crop corn imports were increased by 5 million so the carryout was lowered by 145 million to 1,877 million bushels.
New crop corn feed demand was also increased by 75 million bushels and exports were increased 25 million. The new crop production increase of 240 million bushels from additional corn acres was more than offset by the demand of old and new crop. Thus, even the new crop carryover was reduced by 5 million bushels. Unfortunately, so was the projected new crop corn price lowered by 10¢ to $4.30.
Wheat also saw major changes, but the USDA was increasing, not decreasing, the old and new crop carryovers. Old crop carryover, which marketing year ended 43 days ago, was increased 14 million bushels. The 2024 wheat production was increased by a surprising 133 million bushels resulting in a 98 million bushel increased carryover, which added 15 days’ worth of use to the carryout. The new crop wheat yield was put at 51¾ bushels per acre, the second-best yield ever and the largest US wheat crop since 2017.