Corn Prices Remain Low On Relatively Static Demand Estimates

Dec 10, 2015

With corn production estimates stable at 13.6 billion bushels in the 2015/16 season, farmers can still expect an average price of only $3.65 per bushel according U.S. Department of Agriculture reports released today. While all production data remained stable, demand estimates were revised to reflect newer information showing increases in the ethanol sector and decreased exports.

"We produce an abundant crop in a sustainable manner and, rightfully, are proud of doing so," said National Corn Growers Association President Chip Bowling, a farmer from Maryland. "It is time that our regulators and representatives in Washington, as well as their constituents back home, hear the truth. Corn provides an affordable, clean way to fuel and feed our nation. At NCGA, we will continue to tirelessly work to both have this message heard and build the demand needed to sustain our rural economies."

Yield projections continue to show a national average of 169.3 bushels per acre, which, if achieved, would be the second highest on record. With all production estimates unchanged since the November report, the ending stocks estimate was revised 25 million bushels higher due to revised demand estimates.

Weekly data from the Energy Information Administration showed stronger-than-expected ethanol production in November. USDA report raised projected ethanol demand by 25 million bushels on this data. Should the forecasts for 2015 and 2016 gasoline consumption in the December Short-term Energy Outlook hold true, it is possible ethanol demand figures could rise in the future despite EPA reductions to the Renewable Volume Obligations under the RFS made at the close of last month.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.