USDA Raises Monthly Corn Forecast

The monthly forecast by the U.S. Department of Agriculture on Friday reported corn production for the year could be a much higher 12.2 billion bushels, a significant increase over September's projection of 12.1 billion bushels.

While wetter weather has a strong impact on production, the resultant success will probably put more downward pressure on corn prices, as the agency revised its season-average per bushel to a range of $4.20 to $5.20. That's a drop of 80 cent from September's estimate.

At the end of Thursday's session on the Chicago Board of Trade, corn for December delivery ended at around $4.38 a bushel.

Corn Prices Move Up After Fed and Other Central Banks Cut Interest Rates

Corn for December delivery on the Chicago Board of Trade climbed by 10.5 cents Wednesday after the U.S. Federal Reserve and several other central banks around the world cut their interest rates. After the interest rate cuts corn did rebound settling at $4.275 a bushel on the CBOT, a 10.5 cent or 2.52 percent gain.

While many other commodities dropped, which temporarily made central banking officials feel good because of the usual response of inflation emerging from declining interest rates, corn was one of the few that responded in the positive as demand falls because of a variety of inflationary pressures.

Interest rates in the U.S. were cut from 2 percent to 1.5 percent in hopes of stimulating the economy. Other central banks working in unison with the Fed cut rates by half a percent as well.

Philippine Corn Output Increases 27.6 Percent in 1st Quarter

Corn production in the Philippine's in the first quarter gained 27.6 percent to reach 2.17 million metric tons. In the same season last year production reached 1.70 million metric tons.

Agriculture Assistant Secretary Dennis Araullo said output exceeded expectations of the projected 2.14 million metric tons.

“More farmers planted corn in the last quarter of 2007. The total area harvested for corn reached 711,000 hectares,” Araullo said.

The best areas of production were the provinces of Isabela and Mindanao.

With the unexpected high results, if the second quarter holds up to expectations, the first half would reach 3.34 million metric tons, which would be an increase of 21 percent. Last year the first half produced 2.75 million metric tons.

If corn production keeps at this pace, the yearly output would reach 7.384 million metric tons, bringing the self-sufficiency level of corn for the Philippines to 94 percent.

Assuming the projections are close to accurate, yellow corn would reach 4.647 million and white corn 2.737 million.

Kentucky Corn Planting Behind Schedule as Rains Continue to Hinder

Kentucky corn farmers are scrambling to get their corn fields planted this week, as wet weather has continued to hamper the start of the seasonal planting.

"They're in the `go' mode right now," Kenny Perry, agricultural extension agent in Graves County in western Kentucky, said Thursday. "They're excited to finally be getting into the fields."

Across the state, only 11 percent of acreage intended for corn has been planted, that's in contrast to last year's 39 percent and the average of 47 percent over the last five years on the same date. That's according to the most recent report from the National Agricultural Statistics Service's Kentucky field office.

If Kentucky weather can remain dry, the season for corn should be ok, as there is still a couple weeks to plant without experiencing the lower yields expected if a later sowing results in summer heat influencing the pollination of the corn.

The option for Kentucky farmers would be to sow soybeans, but that isn't without risks either, as the 2007 drought has resulted in supply problems for soybean seeds. Most of those problems are connected to varieties offered, more than being able to attain some type of soybean seed.

This is the short window where major decisions have to be made whether to go ahead with corn or switch to soybeans; much of what farmers in other states around the country are facing.

Corn News Weekend Roundup

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Corn Falls on Improved Weather

Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.

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Corn market gains more uncertainty in April

Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.

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CBOT Corn Review: Down On Profit-Taking, Weather Concerns

U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.

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Profit taking weigh down corn futures

U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs

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S Korea's Nonghyup buys 165,000 tonnes of US corn

South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.

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Corn Futures Expected To Continue To Grind Higher

In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.

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Texas A&M report clears corn from food price inflation

The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.

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Weekend Corn News Roundup

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CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking

Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.

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Corn Looks to Trend Higher

On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.

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In The Cattle Markets: Prospective Plantings Will Not Help Feeders

It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.

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Japanese food processor to accept GM corn

Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.

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CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking

Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.

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Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls

Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.

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Monsanto to build seed corn facility near Independence

On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.

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USDA's Prospective Plantings Report for Corn to be Released Soon

Those watching the commodity corn market should remember that the USDA's Prospective Plantings report is scheduled to be released on March 31.

History has shown that many times the futures market makes a lot of swings leading up to the release of the report; with speculation and rumors generating the swings.

On the other hand the elevator markets are usually less volatile, and trade on the realities of supply and demand rather than the unknown.

In other words, we need to be cautious during this time, and resist the temptation to follow the speculators.