In its first survey-based estimate, the USDA predicts record level U.S. corn production of 13.05 billion bushels for 2007. If attained, this output would represent a 24 percent increase over 2006 production. The yield should average 152.8 bushels per acre nationally. Hot weather is gripping a large part of the country, especially in the South. Drought conditions still are a threat in the eastern Corn Belt, especially eastern Indiana and Ohio. However, growing conditions are much more favorable in the western Corn Belt, especially Iowa and Illinois.

Feed use for 2007 holds steady at 5.75 billion bushels in the USDA forecast. That may be optimistic since distillers’ dried grains with solubles production will increase dramatically. Total corn use comes in at 12.7 billion bushels in 2007, up 1.3 billion bushels from the previous year. USDA puts the 2007 price range at $2.90 to $3.40 per bushel.

Meanwhile, soybean production for 2007 is projected at 2.65 billion bushels, down 18 percent from 2006. Soybean production will fall far short of use and stocks are expected to plunge. With 2008 demand for soybeans expected near 3 billion bushels and production near 2.6 billion bushels, supplies will tighten significantly in the year ahead.

Source: Doane Ag Serve