August 20, 2009

US corn output seen up five percent on-year

US corn production will be up five percent from last year, and corn planted area estimate is unchanged at 35.2 million hectares, according to the USDA's latest crop production estimates.

The market had expected planted area estimation to drop 240,000 hectares.

The market was on notice, thinking the USDA had made a mistake with their high acreage estimates in the June report, said Chris Brown, wheat trading manager of CBH Group.

Brown said the burgeoning corn crops would put downward pressure on world feed grain prices, and that the US corn production could be affected by a late freeze in the country.