August 16, 2010

Record US corn crops see strong demand

The 120-million bushel increase in US corn production would be more than offset by a 30-million bushel increase in domestic corn use and a 100-million bushel increase in exports.

Big US yields are translating into big crops for corn and soy. However, US ending stocks for both crops are expected to remain tight on strong demand, according to USDA's August 12 World Agricultural Supply and Demand Estimates.

For example, the 120-million bushel increase in US corn production would be more than offset by a 30-million bushel increase in domestic corn use and a 100-million bushel increase in exports.

Projections for a record-tying soy yield of 44 bushels would push US soy production to a record 3.4 billion bushels, 88 million bushels above last month's projection.

However, much of the increase would be offset by a projected 65 million bushel increase in exports, reflecting strong exports to China and reduced soy stocks in South America. Projected China soy imports were raised to 49.5 million tonnes and 52 million tonnes, respectively for 2009-10 and 2010-11.

Soy US ending stocks are unchanged from last month, while ending stocks for corn are projected 61 million bushels lower, to 1.3 billion bushels, the lowest in four years.