Corn crop likely to set another record

By | September 23, 2010
Another record (or near record) corn crop will be binned this fall, with the USDA projecting a record 165.0 bushels per acre in its August report, 0.3 bushels above last year's record. That will total 255 million bushels more than the 2009 crop for a record 13.365 billion bushels. Domestic use and exports are keeping supplies tight, however, and pre-harvest jitters indicate the market is concerned about reports of smaller-than-expected yields as the early harvest begins. With smaller stocks of old crop corn, the supply of corn for the 2010-'11 marketing year is expected to be only 11 million bushels larger than last year's supply. USDA forecasts consumption of U.S. corn during the 2010-'11 marketing year at a record 13.49 billion bushels, led by a 200 million bushel increase in corn used for ethanol production and a 75 million bushel increase in exports. Year-ending corn stocks for the 2010-'11 marketing year are projected at a four-year low of 1.312 billion bushels, which at 9.7 percent of projected consumption, would be the lowest ratio in seven years.