USDA: Corn crop expected to be at record level
August 12, 2013 | 04:43 PM
U.S. corn growers are expected to produce a record-high 13.8 billion bushels of corn in 2013, and a near-record soybean crop, but not quite as high a production level as expected in July, according to the Crop Progress report issued today by the Agriculture Department’s National Agricultural Statistics Service.
The announcement is expected to intensify the arguments surrounding congressional efforts to repeal or change the Renewable Fuel Standard that governs the use of renewable fuels in the nation's food supply.
Corn and other feed prices have already fallen, although there could be short-term price increases because the market expected an even bigger crop. At midday, new-crop November soybeans were still up about 2.9 percent, while December corn had slipped from gains surpassing 3 percent and were up 1.3 percent, Reuters reported.
“While it is important to remember the crop is not yet in the bins, today’s report should be the last nail in the coffin of the ridiculous ‘food versus fuel’ argument,” Renewable Fuels Association President Bob Dinneen said in a news release.
“Corn stocks are likely to hit an eight-year high and prices are at a three-year low,” Dinneen said. “Meanwhile, USDA is projecting food inflation to average just 2 percent in 2013, down from 2.6 percent in 2012 and well below the historical average of 3 percent. Meat prices are expected to advance just 1.5 percent this year, compared to 3.4 percent last year. All this while ethanol production, demand, and consumption continues to increase.”
“Clearly, the link between the RFS, ethanol, and food prices does not exist.,” Dinneen said.
The forecast corn production is up 28 percent from drought-hit 2012. The early planting season was wet and cold and unfavorable for corn, but by mid-June, there were 97.4 million acres planted to the crop. Also, with 64 percent of U.S. corn crop rated in good to excellent condition as of August 4, NASS forecasts this year’s corn yield at 154.4 bushels per acre, the third-highest yield on record.
U.S. soybean production is forecast at 3.26 billion bushels in 2013, up 8 percent from last year. NASS forecasts 76.4 million acres of soybeans for harvest this year. If realized, this will be the second largest harvested acreage on record.
Based on August 1 conditions, soybean yields are expected to average 42.6 bushels per acre, up 3 bushels from 2012.
NASS forecasts all cotton production at 13.1 million 480-pound bales, down 25 percent from last year. Yield is expected to average 813 pound per harvested acre, down 74 pounds from last year.
Wheat production is forecast down from 2012. According to the report, all wheat production is expected to total 2.11 billion bushels this year, down 7 percent from 2012.
Based on August 1 conditions, NASS forecasts the all wheat yield at 46.2 bushels per acre, down slightly from last year.
NASS said the agency interviewed more than 24,000 producers across the country in preparation for the report. The agency also conducted field and lab measurements on corn, soybeans, wheat and cotton in the major producing states, which usually account for about 75 percent of the U.S. production.
The announcement is expected to intensify the arguments surrounding congressional efforts to repeal or change the Renewable Fuel Standard that governs the use of renewable fuels in the nation's food supply.
Corn and other feed prices have already fallen, although there could be short-term price increases because the market expected an even bigger crop. At midday, new-crop November soybeans were still up about 2.9 percent, while December corn had slipped from gains surpassing 3 percent and were up 1.3 percent, Reuters reported.
“While it is important to remember the crop is not yet in the bins, today’s report should be the last nail in the coffin of the ridiculous ‘food versus fuel’ argument,” Renewable Fuels Association President Bob Dinneen said in a news release.
“Corn stocks are likely to hit an eight-year high and prices are at a three-year low,” Dinneen said. “Meanwhile, USDA is projecting food inflation to average just 2 percent in 2013, down from 2.6 percent in 2012 and well below the historical average of 3 percent. Meat prices are expected to advance just 1.5 percent this year, compared to 3.4 percent last year. All this while ethanol production, demand, and consumption continues to increase.”
“Clearly, the link between the RFS, ethanol, and food prices does not exist.,” Dinneen said.
The forecast corn production is up 28 percent from drought-hit 2012. The early planting season was wet and cold and unfavorable for corn, but by mid-June, there were 97.4 million acres planted to the crop. Also, with 64 percent of U.S. corn crop rated in good to excellent condition as of August 4, NASS forecasts this year’s corn yield at 154.4 bushels per acre, the third-highest yield on record.
U.S. soybean production is forecast at 3.26 billion bushels in 2013, up 8 percent from last year. NASS forecasts 76.4 million acres of soybeans for harvest this year. If realized, this will be the second largest harvested acreage on record.
Based on August 1 conditions, soybean yields are expected to average 42.6 bushels per acre, up 3 bushels from 2012.
NASS forecasts all cotton production at 13.1 million 480-pound bales, down 25 percent from last year. Yield is expected to average 813 pound per harvested acre, down 74 pounds from last year.
Wheat production is forecast down from 2012. According to the report, all wheat production is expected to total 2.11 billion bushels this year, down 7 percent from 2012.
Based on August 1 conditions, NASS forecasts the all wheat yield at 46.2 bushels per acre, down slightly from last year.
NASS said the agency interviewed more than 24,000 producers across the country in preparation for the report. The agency also conducted field and lab measurements on corn, soybeans, wheat and cotton in the major producing states, which usually account for about 75 percent of the U.S. production.
