Thursday, February 2, 2012

Corn Production Should Increase says Glauber

Talking to agribusinessmen in Indiana, Joe Glauber, the leading economist for the USDA, told the group that he believes in the spring of 2012 more acreage across the country will be planted in corn.

He said most of that will be in the southern part of the United States.

“Just where soybean prices are relative to corn seems to favor corn planting. Last year there was a lot of competition for acres by cotton, but this year cotton has come down,” said Glauber.

Production in 2012 is only the beginning, according to the economist, who estimates about 93 million acres to be planted this year. Over the next month there will be a few production projections leading up to the report of planting intentions scheduled to be released in the latter part of March.

That report is based upon surveys of farmers.

As for the coming years, stockpiles are expected to grow, although it'll take time in Glauber's view because of the strong demand for corn.

For levels to increase, he sees a need to return to yields of about 160 bushels an acre. Poor weather has kept the yields weaker over the last several years.

Of course we need to eliminate the ethanol mandate as well, and allow people to make decisions as to what fuel they want in their vehicles. That has put enormous pressure on the corn supply.

The majority of corn demand over the next decade will come from China.

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