May 14, 2007

US 2007 corn production seen up; soy down

US corn production is expected to reach 12.46 billion bushels in 2007, up 18 percent from 10.535 billion a year ago, as farmers expand planting area of the crop to capitalise on soaring ethanol demand, the USDA said.

USDA had raised the latest forecast from its March projection of 12.195 billion bushels.

Average yields are seen to rise from 149.1 bushels/acre last year to 150.3 bushels/acre this year.

Dale Durchholz, market analyst for AgriVisor Services Inc., said the US corn harvest should be relatively big this year, as long as the summer weather does not get hot and dry.

USDA projects global corn production in the 2007/08 crop year starting Oct 1 at 766.5 million tonnes, up from an estimated 697.7 million tonnes in 2006/07. Global corn consumption is forecast to reach a record high of 769.5 million tonnes in 2007/08.

Meanwhile, US soy production is expected to total 2.745 billion bushels in 2007, down 14 percent from 3.188 billion bushels in 2006, USDA said.

This latest projection is lower than USDA's March estimate of 2.88 billion bushels.

Average soy yields are forecast to fall from 42.7 bushels/acre last year to 41.5 bushels/acre this year.