USDA is now forecasting a slightly smaller corn crop compared to last month’s estimate, but still higher than last year.

According to the National Agricultural Statistics Service (NASS) October Crop Production report, corn production for grain is now forecast at 14.7 billion bushels, down 1 percent from the previous forecast but up 8 percent from 2019. Based on conditions as of October 1, yields are expected to average a record high 178.4 bushels per harvested acre, down 0.1 bushel from the previous forecast but up 10.9 bushels from last year. Area harvested for grain is forecast at 82.5 million acres, down 1 percent from the previous forecast, but up 1 percent from the previous year.

The October World Agricultural Supply and Demand Estimates reduced the amount of corn expected to be used for ethanol and feed and residual use, and lowered ending stocks. Corn supplies are forecast down sharply from last month on a smaller crop and lower beginning stocks. Corn used for ethanol is down 50 million bushels, based on weekly ethanol production data as reported by the Energy Information Administration into early October. The corn price is raised 10 cents to $3.60 per bushel.