April 12, 2006

USDA expects more corn exports, higher prices

Corn farmers are expected to grow less but export more, pushing price forecasts higher, the Agriculture Department said Monday (Apr 10).

Lesser competition from Argentina is a reason for the improved outlook in exports, the department said.

The department raised outlook for corn prices to US$1.95 to US$2.05 a bushel, up US$0.10 from last month's outlook.

Farmers are expected to grow 11 billion bushels of corn this year, down from last year's 11.8 billion bushels, the department said.

The forecast remained unchanged for wheat and soybeans.

Wheat production is estimated at 2.1 billion bushels, down from last year's nearly 2.6 billion bushels.

Soybean production is estimated at 3 billion bushels, down from last year's $3.1 billion bushels.