In the June World Agricultural Supply and Demand Estimate, USDA raised corn beginning stocks for 2015/16 with a 25 million bushel reduction in 2014/15 forecast corn use in ethanol production. The revision, the result of a reduction of the forecast corn use in ethanol reduction for 2014/2015, is based on data reported in the Grain Crushings and Co-Products Production report through April.

Forecasts continue to show farmers planting 89.2 million acres and harvesting 81.7 million acres, with an average yield of 166.8 bushels per acre and production of 13.6 billion bushels, down from 2014 corn production of 14.2 billion bushels.

Despite total supply and ending stocks revisions, USDA continues to estimate the average farm price for the current market year at $3.55 to $3.75 per bushel, and a broader range of $3.20 to $3.80 for the next market year, which begins Sept. 1.