The first survey-based forecast of US corn production, at 9,266 million bushels, is down 229 million bushels from last month's projection, which was based on adjusted trend yields. In addition, forecast carryin stocks are down 50 million bushels from last month. Projected corn exports are up 25 million bushels because of increased global imports. China's corn crop is off 10 million tons due to reductions in area and yield. Corn crops for Brazil and Argentina are 2 million and 500,000 tons, respectively, below last month's projections because farmers are expected to plant less corn and more soybeans.
Soybeans are cheaper to grow and Brazil's weak currency favors the production of an export crop.
Barley and oats production in Canada are reduced as hot, dry weather has cut yield prospects. Partially offsetting these reductions are larger crops in many East European countries. The larger crops in Eastern Europe will spur more corn exports, but declines in China's and Argentina's corn exports will be offsetting, leaving U.S. corn exports to cover the slightly larger global imports. All Rights Reserved. While every care has been taken to ensure the accuracy of the information on this document neither RMD nor its employees accept responsibility or liability for the validity of any information obtained from this document.