Corn yields down with high heat, low rain: USDA

In Washington, the USDA released the latest World Agriculture Supply and Demand Estimates Report. The report outlined signnificant drops in projected corn production, owning to heat and rain conditions in the Corn Belt.

“U.S. feed grain supplies for 2011/12 are projected lower this month,” the report comments, “with sharp drops in forecast corn and sorghum production. Corn production for 2011/12 is forecast 556 million bushels lower with a reduction in harvested area and lower expected yields. The national average yield is forecast at 153.0 bushels per acre, down 5.7 bushels from last month’s projection as unusually high temperatures and below average precipitation during July across much of the Corn Belt sharply reduced yield prospects.

“Total projected corn use for 2011/12 is reduced 340 million bushels. Feed and residual use is projected 150 million bushels lower reflecting the smaller crop and higher expected prices. Corn use for ethanol is projected 50 million bushels lower with tighter supplies and lower forecast gasoline consumption for 2011 and 2012. Projected corn exports for 2011/12 are reduced 150 million bushels with wheat feeding expected to increase. Ending stocks are projected 156 million bushels lower at 714 million. The stocks- to-use ratio is projected at 5.4 percent, compared with last month’s projection of 6.4 percent. The season-average farm price is projected at $6.20 to $7.20 per bushel, up 70 cents on each end of the range.”

“It appears it’s not whether it will be below trend, it will be how much below trend,” says Darrel Good, a professor with the department of Agricultural and Consumer Economics at the University of Illinois at Urbana-Champaign told Ethanol Producer.

The WASDE report is available here.