The summer is well and truly over and with predictions in for the US corn outlook in 2018, we can start to prepare for the next year of farming. If you’re on top of things you should already have a plan in place. If not, this is your chance to whip up a last-minute plan using these predictions on the corn market.
To really make use of these predictions, it’s best to look at them alongside your own production figures and the rates you can get on your local market.
Surge in Soybeans
Thanks to midsummer rains in August, the easily stressed by drought crop has made a huge leap in yield this year, thus pushing down the price of soybeans per bushel. You can expect to see cuts to soybean prices to be dropping to around or below $9.37 per half a bushel.
Of course, we can’t predict what the weather will be like next year, although we can certainly use our precision agriculture data to try and make guesses from years of previous data. So, whether soybeans will continue to thrive in the US next year is up for debate… however, increased exports of soybeans to China this year are promising.
The more we export to China, the higher we should see the price of soybeans increasing as the US has less to go around.
Corn prices have also taken a hit despite increased exports. This is simply because Americans are eating less corn this year which is increasingly worrying since the USDA has seen a huge increase the amount of corn yield bushels per acre.
Furthermore, Brazil and China had previously imported a lot of US corn to fuel their ethanol plants. But this year we’ve seen a drop as both countries are curbing importation of corn for this purpose.
It’s not just the US that has seen drops. Both the European and Australian markets have both seen a reduction in production, which should have played into the US’ favour… however the Russians harvest has been lifted this year to a record breaking 81 million tonnes!
Wheat seems to be breaking the trend somewhat. In the US, wheat demand predictions have remained consistent and unchanged, while world inventories have had their figures slashed considerably.
So, overall it’s really not been a good year for the US farmer, despite a huge increase in yield production. In a world where so many face famine it seems silly that our increase in yields is hurting farmers more than helping them. But until countries unite to see that mass yields and food supplies are used efficiently to combat hunger in third world countries, we’re just playing to the rules of the leading countries in the world.
Good luck with your planning for next year and leave a comment below telling us how these changes in the corn outlook for 2018 have affected you!