Corn growers see some good news in latest USDA report

The World Agriculture Supply and Demand Estimates Report released this week by the U.S. Department of Agriculture (USDA) lowers corn production by 36 million bushels from last month's forecast of approximately 15 billion bushels and estimates that corn supplies for 2016-17 will be lower, but still at a record 16.84 billion bushels.
“We must pass the Trans-Pacific Partnership (TPP) this year; the farm economy continues to struggle so anything we can do to encourage and grow exports is critical,” Wesley Spurlock, president of the National Corn Growers Association (NCGA), said. “That’s why NCGA continues to encourage our elected officials to build trade access starting with TPP.”
The average U.S. corn yield was reduced by the USDA by 1 bushel per acre. Although the numbers are lower, they still represent a record in yield and production numbers resulting in a 5-cent average bushel increase to $3.25.
The report also showed no change in feed and residual usage, ethanol and other FSI (food, seed and industrial agriculture). Carry-in increased by 22 million bushels.
“Although the production report remained largely unchanged, the export numbers offer some good news in a growing season so far characterized by a large crop and corn prices below the cost of production,” Spurlock said. “U.S. corn exports are doing well, largely due to South American weather problems that are hurting crops in Brazil and Argentina. Asian countries like Japan and Korea are shifting to the U.S. to meet their needs so that’s good news for the nation’s family corn farmers.”

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