May 18, 2009

US corn production could fall 11 million bushels to 12.09 billion bushels in 2009-10 and lower plantings are seen to more than offset higher yields, factors that will pressurise corn prices, according to the USDA.

 

With corn supply expected to fall and usage projected to rise, season-average corn prices for 2009-10 are pegged at US$3.70 to US$4.50 per bushel, down from 2008-09's US$4.10 to US$4.30 per bushel.

 

Current wet conditions across the eastern cornbelt in Illinois, Indiana, Ohio and Michigan are delaying corn plantings, with reports indicating only 18 percent of corn acres have been planted across the area. But overall, reports indicate US corn planting progress is running on par to year-ago levels.

 

The biofuels mandate and improving blending incentives are expected to increase corn use in ethanol production by nine percent to 4.1 billion bushels.

 

US corn exports are also forecast to increase nine percent, as corn shipments from rival countries are projected to decline. As a result, US ending stocks for 2009-10 are seen to drop 28 percent.