For 2016-17, total domestic usage is forecast to increase to due to slightly higher feed and industrial use. Exports are forecast to decrease to 1.55 Mt due to the strong competition from the major corn and wheat exporting countries. Carry-out stocks are forecast to increase by 20%, to the new all-time record level of 2.7 Mt, this is well above the previous five and ten-year averages. The Chatham corn price is forecast to decrease slightly from 2015-16 due to the large North American and world supplies, lower US corn prices but an offsetting weak Canadian dollar. For 2017-18, seeded area increased by 8% to a nearrecord level. Carry-in stocks are at a record level for the second year. Production is forecast to increase 3% to 13.6 Mt which is the second highest on record all-time due to the higher area and an average yield assumption. Imports are forecast to decrease due to the higher domestic supply. However, record carry-in stocks and high production will cause total supply to remain unchanged at 16.8 Mt. Total domestic usage is forecast to increase by 2% due to trend increases in feeding, ethanol production and other industrial use such as starch. Exports are forecast to increase by 10% due to the higher total supply and good demand from the British Isles and western EU countries. Carry-out stocks are forecast to decrease by 11% or 2.4 Mt and remain about 25% higher than the previous five-year average. The nearby Chatham corn price is forecast to increase slightly due to slightly higher US corn futures prices. Some offsetting pressure will be provided by the strengthening of the Canadian dollar. During the summer, the USDA increased its forecast of the 2017-18 US corn seeded and harvested area which increased the forecast for US corn production and boosted the ending stock projection so that it is similar to last year. If achieved, this will be the fourth straight year of high US corn yields, near 170 bushels per acre, and near-record production and supply. For the previous three crop years, US corn futures have averaged US $3.67/bu for that period and, based on conditions to-date, there will be much deviation from that average. Currently, the overall crop year price outlook is very similar to last year, with higher futures prices being offset by a weaker basis. As in the US, production and exports for the other three major world corn market competitors, Argentina, Brazil and Ukraine, are expected to be similar to the level expected for 2016-17. The lower US dollar will help provide a floor for US corn export prices which will allow the US to remain competitive and provide underlying support for the US corn futures prices.