WASDE: Another increase in projected corn production
October 6, 2009
BY Erin Krueger
Report posted Oct. 12, 2009, at 2:50 p.m. CST
In its Oct. 9 World Supply and Demand Estimates report, the USDA increased corn production estimates for 2009-‘10 by 63 million bushels. According to the report, a 2.3-bushel-per-acre yield increase will more than offset the 700,000 acre reduction in harvested area this growing season. Total corn supplies are projected to be 42 million bushels higher than estimated last month.
Estimated total U.S. corn use for 2009-‘10 was increased by 5 million bushels over last month's projections. Feed and residual use projections were increased by 50 million bushels. Food, seed, and industrial uses were increased by 5 million bushels due to higher expected use for sweeteners because of tight sugar supplies.
The report also stated that a 50-million-bushel reduction in projected exports will offset most of the expected increase in domestic use. According to the report, this projected reduction in exports is due to increased supplies of feed grains in Canada and larger world wheat supplies that are expected to increase competition for U.S. corn exports.
October projections for 2009-‘10 ending corn stocks are 42.47 million bushels in the U.S., and 136.25 million bushels worldwide. The ending corn stocks for 2008-‘09 are estimated to be 41.26 million bushels in the U.S., and 130.27 million bushels worldwide.
According to the report, the 2009-‘10 marketing-year average farm price projection is unchanged at $3.05 to $3.65 per bushel. In the report, the USDA projects that 79.3 million acres of corn will be harvested by the end of October with an average yield of 164.2 bushels per acre.
According to the Feed Outlook report released last month by the USDA Economic Research Service, 4.2 billion bushels of corn will be used to produce ethanol during the 2009-‘10 marketing year. An estimated 3.675 billion bushels of corn was used to produce ethanol during the 2008-‘09 marketing year.
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