October 16, 2007

US to post another record crop for corn

US corn production for this year is forecast at 13.3 billion bushels, up slightly from September's projections and 26 percent above 2006, according to a report released Friday (October 12) by the US Department of Agriculture. Based on conditions as of October 1, yields are expected to average 154.7 bushels per acre, down 1.1 bushels from September but 5.6 bushels above last year.

If realized, this would be the second highest yield on record, behind the 160.4 bushel yield in 2004. Production would be the largest on record as farmers are seen to harvest the most corn acres since 1933.

Forecast yields are higher than last year across the Great Plains, central Corn Belt and Delta where adequate rainfall during much of the season provided favourable growing conditions.

Expected yields across the Ohio and Tennessee Valleys, Northeast, and mid-Atlantic States are down from last year, as drought conditions during much of the growing season reduced soil moisture levels and stressed the crop.

On the other hand, soy production is projected at 2.60 billion bushels, less than 1 percent down from the September predictions and down 19 percent from last year's record high.

Based on October 1 conditions, yields are expected to average 41.4 bushels per acre, unchanged from last month but down 1.3 bushels from last year. Compared with last month, yields are forecast lower in Illinois, Kentucky, Tennessee, Wisconsin, and most of the Atlantic Coast states.

Hot, dry conditions continued to cause most of the decline, especially in Delaware, Illinois, Kentucky, Virginia, and the Carolinas, all down at least 2 bushels from last month.

Yields increased from the September 1 forecast in Iowa, Ohio, New York, the Dakotas, and most of the Gulf Coast states.