Corn Estimate Matches Trade Ideas

WASHINGTON - Jan 11/08 - SNS -- Corn for grain production in 2007 is estimated at 13.1 billion bushels, down 1% from the November forecast but 24% above 2006, according to the USDA's National Agricultural Statistics Service (NASS) final crop report for 2007.

The reduction in the estimated crop size is in line with trade expectations. Prior to the releaser of the report, surveys of traders revealed they expected the USDA to come in at Corn (19) 13.109 billion bushels, with guesses ranging between 13.012 and 13.212 billion.

The average U.S. grain yield is estimated at 151.1 bushels per acre, down 1.9 bushels from the November forecast but 2.0 bushels above 2006. The 2007 yield estimate is the second highest on record, behind 2004, while production is the largest on record as producers harvested the most corn acres for grain since 1933.

U.S. corn for grain production is estimated at a record high 13.1 billion bushels, down 1% from the November forecast but up 24% from 2006. The average U.S. grain yield is estimated at 151.1 bushels per acre, down 1.9 bushels from November but 2.0 bushels above 2006. This is the second highest yield on record, behind 2004.

Planted area, at 93.6 million acres, is up 19% from last year to the highest level since 1944. Corn planted acreage is up in nearly all States as favorable corn prices, driven by growing demand from ethanol producers and strong export sales, encouraged farmers to plant more acres to corn. The increase in corn planted acres is partially offset by fewer acres of soybeans in the Corn Belt and Great Plains and fewer acres of cotton in the Delta and Southeast. Record high planted acres were set in California, Idaho, Illinois, Indiana, Minnesota, and North Dakota.

Area harvested for grain, at 86.5 million acres, is up 22% from 2006 to the highest level since 1933. Illinois growers harvested a record high 13.1 million acres, up 1.90 million acres from last year, while farmers in Iowa harvested a record high 13.9 million acres, up 1.50 million acres from a year ago. Record high corn for grain acres were also harvested in Idaho, Indiana, Minnesota, North Dakota, and South Dakota.

The 2007 corn objective yield survey data indicate the highest number of ears per acre on record for the combined 10 objective yield States (Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin), surpassing the previous record set in 2004. Indicated ears per acre are higher than 2006 in all objective yield States, with record highs being set in Illinois, Indiana, Iowa, Nebraska, and Wisconsin.

Corn silage production is estimated at 106 million tons, up 1% from 2006. The U.S. silage yield is estimated at 17.5 tons per acre in 2007, up 1.3 tons from last year. Area harvested for silage, at 6.07 million acres, is down 6% from a year ago.

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