USDA Trims Corn Production, Tightening Supplies and Boosting Prices
The USDA's World Agricultural Supply and Demand Estimates (WASDE) report for September has sent a clear message to farmers, indicating that corn supplies are tightening. The agency reduced its estimate of the 2026 U.S. corn crop by 213 million bushels, putting production at 15.8 billion bushels. This smaller crop is not being met with weaker export demand, as USDA left the 2026/27 export forecast unchanged at 3.3 billion bushels.
Instead, USDA is counting on reduced domestic use to help balance the market, cutting feed and residual use by 150 million bushels. Projected ending stocks fall to approximately 1.6 billion bushels, down 86 million from August. The result of this tightening is a much higher price outlook for corn.
The projected season-average corn price was raised by 30 cents to $4.80 per bushel. This increase in price could provide a much-needed cushion for farmers as combines move through the fields.