September 12, 2009

USDA sees larger 2009 corn production due to stronger yields

US corn production in 2009 will be stronger than previously because farmers are getting better yields, the US Department of Agriculture said Friday (Sept 11).

"US corn production is forecast at 12.954 billion bushels, 193-million higher than in August, with higher expected yields throughout most of the corn belt," the USDA said in the September edition of the World Agriculture Supply and Demand Estimates report.

The new forecast for the national corn yield average is 161.9 bushels per acre, an increase from 159.5 bushels per acre that the USDA predicted in August.

"If realised, this will be the highest yield on record and production will be the second largest, behind 2007," the USDA said a crop production report also released Friday. "Yield forecasts increased from last month across the western corn belt and the northern half of the Great Plains as mild temperatures and adequate soil moisture supplies provided favorable growing conditions."

The USDA raised its 2009-10 marketing year forecast for corn ending stocks to 1.635 billion bushels, up from last month's prediction of 1.621 billion bushels. But 2009-10 beginning stocks - the corn left over from the old 2008-09 marketing year - was lowered because a lot more corn than expected went into ethanol.

"Beginning stocks [for 2009-10 are lowered 25 million bushels reflecting higher expected corn use for ethanol in 2008-09 based on record July and August production of gasoline blends with ethanol as reported by the Energy Information Agency," the USDA said.

The new forecast for corn use in ethanol for the 2008-09 marketing year is 3.675 billion bushels, up from last month's prediction of 3.65 billion bushels. The forecast for corn use in ethanol in 2009-10 is unchanged at 4.2 billion bushels.