September 29, 2010
US corn prices rise as harvest progresses
The USDA's latest predictions indicate that US corn harvest will total 13.16 billion bushels with average yields of 162.5 bushels per acre, as prices continue upward even as farmers work to bring in possibly the largest crop on record.
The USDA has reduced its yield and production estimates of this year's crop somewhat from those earlier in the season, but the biggest factor is demand.
Growing demand for corn exports has created a situation in which a 13-billion-bushel crop is needed to hold prices steadily. A poor crop in this environment could be disastrous for livestock producers.
This week's Crop Progress report shows 27% of corn in the top 18 production states harvested as of September 26, compared with just 6% a year ago and 15% for the five-year average for the date. Poorly-timed rains have delayed fieldwork in some areas, creating some concern of reduced yields.
In Iowa, the USDA lists 91% of the crop mature, and yet only 8% was harvested. In Wisconsin, just 8% is harvested while 63% is mature.
Crop conditions in the rest of the US remain promising, with 66% of the crop in the top 18 states rated good or excellent and 13% rated poor or very poor. This contrasts with 68% good or excellent, and 10% poor or very poor one year ago.
