USDA Lifts Corn Crop Forecast

WASHINGTON - Sep 12/07 - SNS -- Corn production is forecast at 13.3 billion bushels, up 2% from last month and 26% above 2006, according to the USDA. Based on conditions as of September 1, yields are expected to average 155.8 bushels per acre, up 3.0 bushels from August and 6.7 bushels above last year.

If realized, this would be the second highest yield on record, behind the 160.4 bushel yield in 2004. Production would be the largest on record as growers expect to harvest the most corn acres for grain since 1933.

Expected yields are higher than last month across the northern and central Great Plains and Corn Belt where heavy rainfall during the month provided much-needed moisture for the crop. Yield forecasts in the southern Great Plains and Delta are also higher than last month as early harvest results are better than anticipated. Yields are unchanged or lower than August across much of the Northeast and Mid-Atlantic States.

The latest forecast is significantly larger than most traders were expecting. Surveys prior to the USDA report revealed they were looking for the USDA to boost forecast output from 13.054 billion to 13.123 billion bushels, with guesses ranging between 12.767 and 13.416 billion.

Subscribers can read the full text of the article by Clicking here