The hike in corn pricing in 2021 lifted the net cost of corn (after accounting for the credit from selling several processing coproducts, such as corn gluten feed) to levels not seen in ten years, when the Corn Belt suffered a widespread, devasting drought.

Although net corn cost declined under harvest pressure last fall, we’re still seeing values well above last season’s level. Basis bids remain strong as processors vie for their share of corn remaining to be sold.

The hope is we will see more acres planted with corn in 2023 to help lower prices in the next marketing year. We will get our first glimpse of USDA’s thoughts on acreage trends at the Ag Outlook Conference later this month, and then the Mar. 31 Prospective Plantings report will show growers’ planting intentions.

If you are thinking about contracting 2023/24, please contact us to discuss timing and other factors to consider in this expensive market.

U.S. net corn cost overview

Source: USDA
Posted by: Information Services
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