November 15, 2004

USDA Raises Forecast For 2004-05 US Corn

The U.S. Department of Agriculture on Friday raised its forecast yet again for U.S. corn production to a new record of 11.741 billion bushels, up from the 11.613 billion bushels predicted a month ago, and lowered its prediction for exports.
 
The USDA, in its crop production report, said yields are expected to average 160.2 bushels per acre, 1.8 bushels more than was expected in October and 18 more bushels than the previous year's average.
 
"Across the U.S., yields are forecast at record high levels in 19 of the 33 published corn states," the USDA said in the crop production report. "With the exception of Wisconsin, yields in the corn belt states are forecast at record highs as weather conditions have been mostly favorable throughout the growing season."
 
Exports will be lower than expected, though, the USDA said in its monthly supply and demand report, also released Friday. The USDA said it cut its export forecast for both corn and grain sorghum by 25 million bushels "due to the slow pace of export sales to date and lower projected imports by Mexico, South Korea and several other major markets."
 
The USDA, in the supply and demand report, cut the 2004-05 corn export forecast to 2.05 billion bushels and raised its ending stocks forecast by 128 million bushels to 1.819 billion bushels.