USDA decreased its 2019/20 U.S. corn acreage and yield forecasts in the June 11 WASDE report. Corn acreage was brought down by 3 million, from 92.8 to 89.8 million acres. Yield per harvested acre was moved from 176.0 bushels per acre to 166.0, a difference of 10 bushels. These adjustments were reflected in the overall production forecast, which was lowered to 13.68 billion bushels.
Also, the 2018/19 U.S. corn exports forecast was reduced to 2.2 billion bushels, down 100 million bushels from the May report. This downward adjustment comes at a time when corn from Argentina and Brazil is price competitive and widely available due to a large crop this year. Speaking of prices, Jul-19 futures contracts jolted nearly 3 percent higher following the WASDE release, closing just below $4.28 for the day.