USDA Slightly Raises Estimates for U.S. Corn Supply
More U.S. corn will be available in 2012 and 2013 than previously anticipated, according to a U.S. Department of Agriculture report released this morning. Raising total production by 19 million bushels with a three-tenths of a bushel increase in the corn yield to 122.3 bushels per acre, forecasts now project higher ending stocks of 647 million bushels, an increase of 28 million bushels since last month’s report. The increased production came as USDA revised upwards yields in Illinois, North Dakota, Michigan, Ohio and the far eastern Corn Belt. These increases were tempered by slight reductions in Iowa, Nebraska, Wisconsin and Texas.
“The estimates released today illustrate how, even under such adverse conditions, U.S. corn farmers can produce a crop,” said National Corn Growers Association President Pam Johnson, a farmer from Floyd, Iowa. “Additionally, the increased overall supply further shows what our members have understood all along, that you cannot count the corn before it is harvested. It is our hope that these stronger projections are taken into account when decisions based upon crop estimates are made.”
The report also indicated a slight drop in price projections with the season-average farm price for corn now forecast at $6.95 to $8.25 per bushel. This revision indicates a 20 cents drop at the midpoint, reflecting a lower-than-expected September price and the continuation of weakness in cash and deferred futures prices over the past month. Global corn production, at 839.7 million tons (33.1 billion bushels), will be the second highest on record.
Story Courtesy of National Corn Growers Association. Click here to visit their site.