USDA: Record Year For Corn Production

USDA released the first round of projections for supply and demand for the 2010 corn crop, estimating record production of U.S. corn this year, at 13.4 billion bushels. The report also projects that acres planted and harvested will rise slightly from last year, with 88.1 million acres planted and 81.8 harvested. Currently, the national average yield is projected to be slightly lower than last year, at 163.5 bushels per acre.

This first report for the year projects total U.S. corn use for 2010/11 will be up 2% from the current year, with higher expected food, seed and industrial use and exports more than offsetting a decline in projected feed and residual use. USDA projects that food, seed and industrial use will be 4% higher with a 200 million bushel increase in corn used for ethanol accounting for most of the increase. Corn ethanol use, projected at 4.6 billion bushels, is supported by rising federal biofuels mandates and strong blending incentives that continue to boost ethanol usage.

Exports are projected up 3% with larger supplies and lower prices, but rising foreign feed grain supplies, mostly corn, limit export growth in 2010/11. Domestic corn feed and residual use is projected down slightly with a slow recovery in animal numbers and increased use of distiller’s grains. U.S. corn ending stocks for 2010/11 are projected up 5% to 1.8 billion bushels. The season-average farm price is projected at $3.20 to $3.80 per bushel, compared with the 2009/10 forecast of $3.50 to $3.70 per bushel.