Corn Supplies Tighten as USDA Cuts Crop Forecast

The US Department of Agriculture (USDA) has released its World Agricultural Supply and Demand Estimates report for September, which is sending a clear message to farmers heading into harvest. The report shows that corn supplies are tightening due to a reduced crop forecast.

In the September WASDE report, USDA cut its estimate of the 2026 U.S. corn crop by 213 million bushels, putting production at 15.8 billion bushels. This reduction comes primarily from a 2.2-bushel-per-acre cut in the national yield estimate to 178.5 bushels per acre, along with a slight reduction in harvested acreage to 88.5 million acres.

Despite this smaller crop, export demand for corn remains strong. The USDA left the 2026/27 export forecast unchanged at 3.3 billion bushels, indicating that global demand for U.S. corn is still robust. As a result, projected ending stocks fall to approximately 1.6 billion bushels, down 86 million from August.

The tighter balance sheet is reflected in the USDA's price forecast, which raised its projected season-average corn price by 30 cents to $4.80 per bushel.