September 24, 2010

Informa cuts 2010 US corn, soy output forecasts

Private analytical firm Informa Economics cut its estimates Thursday (Sep 23) for US corn and soy production as the harvests advance.

Informa pegged 2010 corn output at 12.88 billion bushels, below its early September estimate for a final crop of 13 billion. The firm estimated 2010 soy output at 3.412 billion bushels compared with projects earlier this month of 3.437 billion.

Results from the early corn harvest have been disappointing and encouraged talk of a smaller-than-expected crop. On September 10, the USDA estimated corn production at 13.16 billion bushels.

According to traders, early soy harvest results have been strong, but Informa said that it was lowering its estimate for 2010 soy acres. The USDA on September 10 pegged the soy crop at 3.483 billion bushels.

Traders said that Informa has also issued estimates for 2011 crop plantings on Thursday (Sep 23). Reduced corn output expectations recently sparked a rally in corn prices and encouraged talk about the need for soy prices to rise to compete for acreage.

The firm projected 2011 corn plantings at 90.4 million acres and soy plantings at 77.4 million acres, traders said. Informa estimated all-wheat plantings at 57 million acres and cotton plantings at 11.05 million acres.

The USDA in June estimated 2010 corn plantings at 87.9 million acres and soy acres at 78.9 million. The government pegged all-wheat plantings at 54.3 million and cotton plantings at 10.9 million.

Corn and soy are planted in the spring. Winter wheat is planting in the autumn for harvest in early summer, and spring wheat is planted in the spring for harvest in late summer.