WASHINGTON (RFD-TV) — Higher corn yield estimates are putting additional pressure on prices, prompting corn groups to urge Congress to finalize year-round E15 sales and pass a new Farm Bill.
The latest USDA World Agricultural Supply and Demand Estimates (WASDE) report pointed to additional corn supplies, sending prices lower. The National Corn Growers Association says the price declines are adding to financial pressure on growers.
NCGA says year-round E15 sales and a new Farm Bill would support corn demand while giving farmers greater certainty. The group is also calling for long-term demand opportunities for renewable ship and aviation fuels.
Meanwhile, corn harvest is trailing the five-year average. Harvest progress in 11 major corn-producing states is behind schedule, with the national crop four percentage points behind the five-year average.
Meanwhile, corn harvest is trailing the five-year average. Harvest progress in 11 major corn-producing states is behind schedule, with the national crop four percentage points behind the five-year average.
With more corn expected this year, producers are also weighing how to market the additional supply. Jeff Peterson with Heartland Farm Partners is urging farmers to be patient rather than make additional sales in response to higher yield estimates.
“But everybody’s going to be really assessing and saying, ‘Okay, with this increase in the yield, do we need to make additional sales in here?’ And our opinion, the quick opinion right now, is no. I think we need to be patient,” Peterson said.
He says several factors could influence prices in the months ahead, including final yields, export demand, corn shipments from Ukraine through the Black Sea and the potential impact of a strong El Niño on South American production.
“We’re still optimistic down the road from here. We can see some higher prices as a result. You know, I wouldn’t do panic selling here,” Peterson said.
