USDA Higher Than Trade on Corn

WASHINGTON - Aug 11/06 - SNS -- Corn production in the United States is forecast at 11.0 billion bushels, down 1% from last year and 7% below 2004, according to the USDA's latest crop production estimates.

This is at the high end of pre-report forecasts by the trade. The average guess for today's number was 10.795 billion bushels, with trade guesses ranging beteem 10.38 and 11.103 billion.

The USDA said based on conditions as of August 1, yields are expected to average 152.2 bushels per acre, up 4.3 bushels from last year. If realized, yield would be the second largest and production would be the third largest on record.

Forecast yields across the Great Plains and western Corn Belt are at or below last year as scarce precipitation and above normal temperatures depleted soil moisture levels and caused crop conditions to decline. Expected yields are generally higher than last year in the eastern Corn Belt and Ohio Valley as frequent rainfall and near normal temperatures throughout much of the growing season helped maintain adequate soil moisture.

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