Economist: Expect flat or lower feed prices on record corn crop

Corn should be “very inexpensive” and feed readily available after the U.S. harvest this year, according to Iowa State University economist Chad Hart.

Crop progress reports from earlier this year had indicated that yields could exceed trendline expectations, but the projections released by the U.S. Department of Agriculture on August 12 exceeded even the more optimistic private estimates by some 750 million bushels, Hart said. Although the U.S. Department of Agriculture (USDA) anticipates that strong demand will likely increase U.S. corn exports, the agency also slashed the expected on-farm corn price by 30 cents per bushel. Market prices dropped 13.5 cents to US$3.72 per bushel in the hours immediately after the USDA’s release.