Another bumper corn crop looks on the way for the 2016-17 marketing year, projected at 14.4 billion bushels, up 829 million from last year and 214 million higher than the previous record set in 2014-15, USDA said in its monthly World Agricultural Supply and Demand Estimates report.

“The key as always is that yield number, which is highly dependent on late June and July weather,” noted Steve Meyer and Len Steiner Inc., in their Daily Livestock Report. “The reason why corn markets remain bearish for now is due to the combination of a large carryover (1.8 billion bushels) and projections for a +14 billion bushel crop. Livestock producers can absorb more … at the right price. But even with higher use, ending stocks for 2016-17 are projected at almost 2.3 billion bushels. If correct, this would imply a stocks-to-use ratio of over 16 percent. And that kind of ratio, if it ends up being true, could quickly lead you toward $3 corn.”

(Source: , May 10, 2016, NewsMakers PM from meatingplace.com)