Corn Economic Value Update – 09/13/2021

In the September WAOB report the USDA  projected the 2021/2022 US corn carryout at 1.4 billion bushels or 10% of crop year usage of 14.8 billion bushels.The accompanying scatter studies display the harvest high and low for central Illinois corn as a function of the USDA’s Autumn  forecast for the US corn (new crop) stocks /usage ratio. The USDA’s 10% forecast would   suggest a harvest time price forecast of about $4.25 to $5.75. Our work does not suggest much change on the supply side of the US corn balance but the demand side is subject to the usually uncertainties from China or Southern Hemisphere grain production.