By Andi Anderson
The upcoming January USDA World Agricultural Supply and Demand Estimates (WASDE) report and final production numbers are expected to play a key role in determining corn market trends for 2025.
Michigan Agricultural Commodities Market Specialist Ken Lake emphasized the importance of these reports, noting their potential to confirm tightening U.S. corn stocks.
“The market anticipates confirmation that the U.S. corn crop was smaller than initially projected and that demand has grown,” Lake said. Without such confirmation, farmers could see prices decline as the focus shifts to 2025 planting intentions.
While cash values are down 3% year-over-year, corn prices have risen significantly from late-summer lows. Improved futures, coupled with a 40-cent basis gain, have added approximately 60 cents per bushel for farmers with stored or delayed-priced corn.
Michigan corn demand has been boosted by drought-related shortages south of Columbus, Ohio, and strong exports. According to the USDA’s Grain Transportation Report, year-to-date corn exports for 2024-25 have reached 60% of USDA’s annual projections, surpassing the previous year by 29%.
Despite the current momentum, Lake cautioned that cheaper South American corn, expected to hit the market by late January, could slow U.S. exports and put downward pressure on prices.
Comparing 2025 trends to 2015, Lake pointed out that March 2015 contracts fell sharply after the January WASDE report. “Farmers holding corn should consider increasing sales to capitalize on current futures and basis values,” he advised.
While the uptrend from September remains intact, Lake stressed the importance of staying proactive. With market dynamics potentially shifting, the January reports could be pivotal in guiding farmers’ decisions in the coming months.
Photo Credit: usda
Categories: Michigan, General