WASDE Report May Spark Corn Price Surge

The upcoming WASDE Crop Production Report from the USDA could have significant implications for corn prices. The report is expected to reveal estimates of carryout numbers, which could be a major factor in determining market trends.

While yield estimates are generally agreed upon at around 178.4 bushels per acre for corn and 52.5 bushels per acre for soybeans, the real question is how the USDA will handle these figures in its report. The average guess has USDA coming in around 1.520 billion bushels for corn carryout, but demand could be what surprises everyone.

The market may be expecting a decrease in U.S. corn usage by 300 million bushels due to European demand, which is estimated at around a billion bushels. However, this could still allow the U.S. to utilize around 16.2 billion bushels for ethanol, domestic use, and exports.

As a result, carryout numbers could continue moving lower, potentially reaching as low as 1.2 billion bushels. This could be a major push for corn prices to rise. For soybeans, demand remains strong, while yield estimates could come in at or below 52.5 bushels per acre due to poor finishes across the soybean crop.