Current thinking on 2013’s corn crop is that it will be large and put pressure on prices.
Commodity trading and analysis company Intl FC Stone released a projection for the crop this week.
Projected planted acreage is 96.5 million acres; barring bad weather and assuming a move back to trendline yield, the expected harvest will be 163.6 bushels per acre, for a total crop of 14.5 billion bushels.
Adding in 757 million bushels of carryover corn, the total in the bins will be 15.3 billion bushels. The estimated price per bushel of such a large supply is set at $4.80 per bushel, versus $7.00 or so that farmers saw last year.
A big crop would increase feed, export and ethanol use but the carryout for the coming year would jump to more than 2 billion bushels.