July 13, 2004

USDA Raises Forecast For US Corn Crop To Record 10.6 Billion Bushels

The U.S. Department of Agriculture raised its forecasts for 2004-05 U.S. corn production on Monday in its monthly supply and demand report to a record level of 10.635 billion bushels. The July forecast raised the corn crop prediction from 10.425 billion bushels in June and 10.114 billion for 2003-04.
 
Along with the production increase, the USDA also raised its forecast for 2004-05 corn beginning and ending stocks.
 
The increase for 2004-05 beginning stocks was made, the USDA said in the report, primarily because exports for 2003-04 were lowered by 100 million bushels. The USDA said cancellations for U.S. corn and increased competition from Argentina were to blame for the loss in exports. The USDA now expects 2004-05 carry-in stocks to total 896 million bushels, up from 806 million bushels last month.
 
The USDA said 2004-05 beginning stocks would have been raised higher, but the 100-million-bushel decrease in last year's exports was offset by a 10-million-bushel increase in food, seed and industrial use.
 

Source: USDA