US Corn Balance Sheet Tightens as Stocks-to-Use Ratio Falls Below 10%

The United States is facing a tighter corn balance sheet, even with a massive crop of 15.8 billion bushels, according to the USDA's September World Agricultural Supply and Demand Estimates.

The stocks-to-use ratio has fallen below 10%, from 10.1% in August to 9.7% in September, indicating that the country is not running out of corn but rather has a smaller supply cushion relative to demand.

The reduction in production was due to lower yield estimates, with the national average declining by 2.2 bushels per acre from 180.7 bushels in August to 178.5 bushels in September.

However, the balance sheet is more sensitive to final harvest results, export demand, feed use, and subsequent USDA revisions, making it a crucial time for U.S. farmers as they begin to turn yield projections into actual harvest results.