In it's monthly World Agricultural Supply and Demand Report, released this week, USDA projects that corn demand in the 2009/2010 marketing year will surpass production by 525 million bushels. For the marketing year that begins Sept. 1, USDA estimates corn usage at 12.3 million bushels. The result will be a significant drop in storage stocks.
While the new crop growing season is barely underway, USDA officials predict a 11.9-billion-bushel corn crop, down 155 million from last month's estimate. The reason is late planting and wet conditions in the Eastern Corn Belt, particularly Illinois and Indiana. It is expected to drop the national average yield to 153.4 bushels or by 2 bushels per acre.
Corn ending stocks for 2009/2010 are now projected to be 1.1 billion bushels. That's 100 million below the 2008/2009 projection. USDA cut feed and residual use for 2009/2010 by 100 million bushels this month based largely on reductions in meat and poultry prodcution.
The average corn price for the new marketing year is pegged at $3.90 to $4.70 per bushel. That compares to $4.10 to 4.30 for 2008/2009.
Read more: Corn supply demand
No comments:
Post a Comment