September 26, 2011

US farmers to raise corn plantings next year

US farmers will increase corn cultivation by 2.2% in 2012 following record high prices this summer, according to Informa Economics, a closely watched crop forecaster on Friday (Sep 23).

According to Dow Jones, traders said that the firm estimated corn plantings to rise to 94.3 million acres from the 92.3 million acres planted this year. It also projected soy plantings to jump 1.1% to 75.8 million acres and wheat plantings will rise 2.5% at 56.6 million acres.

Farmers are expected to plant more of the crops to take advantage of high prices. Prices for US corn remain at historic highs after hitting a record in June, fuelled by concerns production will not keep pace with strong demand. Corn for December delivery recently traded down 0.4% at US$6.47 1/2 a bushel at CBOT.

Informa also issued estimates for US wheat production, pegging the 2011 harvest at 2.044 billion bushels, traders said. That is down from 2.208 billion bushels last year and slightly below the USDA's forecast for a harvest of 2.077 billion bushels this year.

Informa estimated output of hard red spring wheat in 2011 at 444 million bushels and output of hard red winter wheat at 782 million bushels, traders said. The USDA recently pegged hard spring wheat output at 475 million bushels and hard red winter wheat output at 794 million bushels. Informa estimated the 2011 soft red winter wheat crop at 460 million bushels, above the USDA's latest estimate for 452 million bushels, traders said.

The USDA is slated to update its wheat output estimates next Friday (Sep 30).