In a Reuters poll of 24 analysts, consensus is U.S. farmers will plant the largest amount of acres in corn in 68 years. Expectations are a faster than usual planting because of mild and drier weather will help raise the corn acreage planted.
Estimates are a total of 94.2 million acres will be planted, which could result in a record crop of 13.8 billion bushels produced, based upon a yield of 161.4 bushels an acre. The previous record is 13.1 billion bushels.
If the estimates are accurate, it'll be the largest amount of acreage planted in corn since 1944.
Some think the higher corn planting estimates are premature, citing farmers who haven't made a decision yet on whether to go with soybeans or corn. Corn is expected to be more profitable, but also has higher input costs.
Most believe higher corn prices are sustainable, which should drive up the earnings per acre by about $100 more than soybeans, matching performance over the last three years.
That assumption is based upon low supply and high demand. The drought in Argentina is also considered a major support for corn prices this year, and a reason for U.S. farmers boosting the number of acres planted.
The thought is if corn is above $6.50 a bushel, farmers will plant more acreage in 2012.
Showing posts with label Corn Acreage. Show all posts
Showing posts with label Corn Acreage. Show all posts
Wednesday, February 8, 2012
Wednesday, March 10, 2010
Huge Corn Harvest Cuts Prices
Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Sunday, January 25, 2009
Corn: Is the Ethanol Party Over?
While some commodities in the precious metals sector will enjoy a banner year in 2009, grains, and specifically corn, won't be doing to well, as least in the first half the year, as corn futures drop below $4 a bushel.
Contrast that to last year when the sky seemed the limit when corn futures reached over $8 a bushel, and money was plentiful.
Even the drought in Argentina hasn't made an impact on corn prices, as similar to wheat, the harvest globally has been so good, that losing a significant amount like that hasn't made a dent in the price holding up at all.
One major reason for the downfall was the reliance on the taxpayer subsidized ethanol industry, which unsurprisingly has been hammered from the artificial industry, which doesn't have a chance of being successful, as most government hair brained ideas aren't.
The drop in oil prices has caused the ethanol industry to collapse, and even with subsidies, many have already filed for bankruptcy. While that will help silver producers with cost inputs, it evidently won't help the costly corn production process.
Corn farmers need to learn if they suck at the government teat, they're eventually going to get sour milk.
Only the gullible couldn't see the foolishness of the government ethanol program that already has been seen to be a failure. Oil would have to be well over $200 a barrel to make it sustainable, and there would be a consumer outcry if that were to happen.
Corn farmers are now looking to get out of a lot of their corn acreage this year, and revert to soybeans, which have much less costly inputs, and a much better chance at success than the heavily subsidized corn ethynal debacle.
Unfortunately for corn producers, they've become addicted to government entitlements, and then mistakenly follow their business advice which they have no expertise in. That's why it's better to rely on yourself and your own research than dipping your hand in the public till.
Because of the mismanaged and faulty ethanol hoax, farmers will now find it difficult to optain loans for planting and inputs, as the banking system is wary, and the harvests and corn markets very volatile.
So even though we love maize, not even the drought in a major corn exporting country like Argentina who had their corn outlet cut by over 25% could bring corn futures back up again.
As far as corn prices later in 2009, one thing that could eventually help, is the fact that there probably will be quite a few less acres planted in corn this year, especially in the U.S.
Much will depend on if that remains true in other parts of the world, In Argentina, this is the worst drought since 1971, so it's hard to picture them going through something like this again. So they should rebound and have a good corn harvest next year, which will have to be included in the corn price outlook going ahead.
One thing for sure, this year will be as unpredictable as it has ever been for corn farmers, and looking ahead it could be much better to plant acreage in a more predictable crop than toss the dice on seeding fields in the volatile corn market.
Contrast that to last year when the sky seemed the limit when corn futures reached over $8 a bushel, and money was plentiful.
Even the drought in Argentina hasn't made an impact on corn prices, as similar to wheat, the harvest globally has been so good, that losing a significant amount like that hasn't made a dent in the price holding up at all.
One major reason for the downfall was the reliance on the taxpayer subsidized ethanol industry, which unsurprisingly has been hammered from the artificial industry, which doesn't have a chance of being successful, as most government hair brained ideas aren't.
The drop in oil prices has caused the ethanol industry to collapse, and even with subsidies, many have already filed for bankruptcy. While that will help silver producers with cost inputs, it evidently won't help the costly corn production process.
Corn farmers need to learn if they suck at the government teat, they're eventually going to get sour milk.
Only the gullible couldn't see the foolishness of the government ethanol program that already has been seen to be a failure. Oil would have to be well over $200 a barrel to make it sustainable, and there would be a consumer outcry if that were to happen.
Corn farmers are now looking to get out of a lot of their corn acreage this year, and revert to soybeans, which have much less costly inputs, and a much better chance at success than the heavily subsidized corn ethynal debacle.
Unfortunately for corn producers, they've become addicted to government entitlements, and then mistakenly follow their business advice which they have no expertise in. That's why it's better to rely on yourself and your own research than dipping your hand in the public till.
Because of the mismanaged and faulty ethanol hoax, farmers will now find it difficult to optain loans for planting and inputs, as the banking system is wary, and the harvests and corn markets very volatile.
So even though we love maize, not even the drought in a major corn exporting country like Argentina who had their corn outlet cut by over 25% could bring corn futures back up again.
As far as corn prices later in 2009, one thing that could eventually help, is the fact that there probably will be quite a few less acres planted in corn this year, especially in the U.S.
Much will depend on if that remains true in other parts of the world, In Argentina, this is the worst drought since 1971, so it's hard to picture them going through something like this again. So they should rebound and have a good corn harvest next year, which will have to be included in the corn price outlook going ahead.
One thing for sure, this year will be as unpredictable as it has ever been for corn farmers, and looking ahead it could be much better to plant acreage in a more predictable crop than toss the dice on seeding fields in the volatile corn market.
Thursday, December 4, 2008
South Korea Replacing Some Corn Imports with other Grains
South Korea, which is the third-largest importer of corn, said it'll probably cut corn imports and replace them with less expensive grains like wheat.
As a result, this year's corn imports from the U.S. could fall by up to 1 million tons from last year's levels.
"Overall corn imports for feed use in 2009 will be similar to this year's level at best and are more likely to fall below the level as feed makers switch to cheaper wheat products," Min Byong-ryol, who represents South Korea for the U.S. Grains Council.
In 2007, South Korea imported 6.7 million tons of corn for feed over the first 10 months of the year. So far in 2008 they've acquired 6.5 million tons of feed corn in the first 10 months.
Min added feed corn purchases should be around 8 million tons overall, with the U.S. accounting for 7.5 million by the end of the year.
Corn used for food will also drop significantly, as less expensive sweeteners like sugar are used by food processors. Corn used for food is under 20 percent of South Korea's total corn imports.
So far this year corn imports for food are down by 19 percent over the first 10 months of the year, coming in at 1.25 million tons.
With fertilizer costs more than doubling from four years ago, it's projected that next year corn acreage planting should drop from 94 million to 86 million. Much of that will be planted in soybeans, which require far less fertilizer input than corn.
As a result, this year's corn imports from the U.S. could fall by up to 1 million tons from last year's levels.
"Overall corn imports for feed use in 2009 will be similar to this year's level at best and are more likely to fall below the level as feed makers switch to cheaper wheat products," Min Byong-ryol, who represents South Korea for the U.S. Grains Council.
In 2007, South Korea imported 6.7 million tons of corn for feed over the first 10 months of the year. So far in 2008 they've acquired 6.5 million tons of feed corn in the first 10 months.
Min added feed corn purchases should be around 8 million tons overall, with the U.S. accounting for 7.5 million by the end of the year.
Corn used for food will also drop significantly, as less expensive sweeteners like sugar are used by food processors. Corn used for food is under 20 percent of South Korea's total corn imports.
So far this year corn imports for food are down by 19 percent over the first 10 months of the year, coming in at 1.25 million tons.
With fertilizer costs more than doubling from four years ago, it's projected that next year corn acreage planting should drop from 94 million to 86 million. Much of that will be planted in soybeans, which require far less fertilizer input than corn.
Friday, April 25, 2008
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.
Friday, April 11, 2008
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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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.
=====
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.
=====
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
=====
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.
=====
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.
=====
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.
=====
Thursday, April 3, 2008
Corn Settles at $6, after Record $6.025
The story for corn continues to be the projected supply problems, and the resultant surge in prices. That story continues, as corn broke another record today, reaching $6.025 a bushel before settling to $6. Corn has already increased by 30 percent this year, as demand increases.
This follows yesterday's prices, which just fell short of the $6 a bushel mark.
"It's a demand-driven market and we may not be planting enough acres to supply demand, so that adds to the bullishness of corn," said Elaine Kub, a grains analyst with DTN in Omaha, Neb.
We also talked about the decreasing acreage being planted in corn this year, which have dropped by about 8 percent across America.
The wet weather continues to wreak havoc in the industry as well, with plantings not only being put off, but growers talking about abandoning corn planting this year if it continues on too long.
The ethanol industry continues to cause problems for corn, as it gobbles up valuable resources; not only on an unproven alternative fuel, but one that may not to be grown profitably at these prices. That's what you get for government mandates and interference.
Wednesday, April 2, 2008
Corn Prices Break Record on Supply Concerns
Corn prices reached a record today on concerns the continuing wet weather in the midwest and southern United States will slow down planting, increasing the possibility that supplies could be low.
Acreage for corn is already projected to be about 8 percent lower than last year's planting, adding to the concern on inventory.
"We're going to start trading the weather here," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "The rainy weekend means that some corn growers may switch acres over to beans, and it also raises the risk that there will be lower corn yields."
Corn surged by 11.75 cents to finish at $5.9575 a bushel on the CBOT, after breaking a record at $5.99 a bushel earlier in the day.
If the wet weather continues, planters may drop corn planting altogether and sow beans instead. Corn prices should rise steadily on a supply and demand basis.
Acreage for corn is already projected to be about 8 percent lower than last year's planting, adding to the concern on inventory.
"We're going to start trading the weather here," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "The rainy weekend means that some corn growers may switch acres over to beans, and it also raises the risk that there will be lower corn yields."
Corn surged by 11.75 cents to finish at $5.9575 a bushel on the CBOT, after breaking a record at $5.99 a bushel earlier in the day.
If the wet weather continues, planters may drop corn planting altogether and sow beans instead. Corn prices should rise steadily on a supply and demand basis.
Monday, March 31, 2008
Nebraska Corn Growers Planting 6 Percent Less Acres Than Last Year
Citing a report from the U.S. Department of Agriculture, Nebraska Farmer reported that farmers in the state would be planting about 6 percent less acres in corn this year than in 2007. Last year there were 9.4 million acres planted, against the 8.8 million projected for 2008.
Nationwide, the USDA said overall corn planting will probably fall from the 93.6 million acres planted last year, to 86 million in 2008, an eight percent drop. Last year's 93.6 million was the largest amount of acres in corn in the U.S. since 1944.
The factors influencing the Nebraska market were higher corn production costs and the higher prices of competitive crops at the time the survey was taken, said Don Hutchens, executive director of the Nebraska Corn Board.
“Corn and soybean markets have fluctuated considerably this spring, and this will likely continue,” Hutchens says. “Although interesting to watch, it can make it more difficult to predict things like planting intentions because each producer calculates the best marketing opportunity for their operation, and those calculations can change. As markets change following this report, what producers intend to plant may change along with them.”
Friday, March 28, 2008
The Latest Corn News
Corn News from around the Internet
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Farm Lobby Beats Back Assault On Subsidies
With grain prices soaring, farm income at record highs and the federal budget deficit widening, the subsidies and handouts given to American farmers would seem vulnerable to a serious pruning.
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Corn choice could be key to consumers
As spring planting nears, farmers are making a choice that could affect what Americans pay for everything from car fuel to chicken wings.
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CBOT Corn Review: Bounce From Losses On Bullish Acres Talk
Chicago Board of Trade corn futures ended higher Friday, rebounding from earlier session losses on bullish acreage outlooks for Monday'splantings report and supportive underlying fundamentals.
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Huge U.S shift away from corn to soy acres
Record-high soybean prices are expected to lure U.S. farmers to make a huge shift away from corn production in 2008 and if the current cold, soggy weather pattern persists in key corn states, corn plantings may be cut even more dramatically than analysts now expe
=====
Glo orders NFA to have corn sold in its outlets, supply watched
BEFORE the supply of corn grits runs out, President Arroyo ordered the Department of Agriculture (DA) to find out if local distributors have been hoarding it or if it is distributed unevenly.
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Corn farmers anxious to get back into fields
Recent rains and flooding have many Arkansas farmers cooling their heels. They would like to be preparing their land for planting corn, but weather-related problems have delayed tillage operations.
=====
South Africa Raises Corn Crop Estimate by 1.7 Percent
South Africa, the biggest corn producer in Africa, raised its corn crop forecast for this season by 1.7 percent.
=====
=====
Farm Lobby Beats Back Assault On Subsidies
With grain prices soaring, farm income at record highs and the federal budget deficit widening, the subsidies and handouts given to American farmers would seem vulnerable to a serious pruning.
=====
Corn choice could be key to consumers
As spring planting nears, farmers are making a choice that could affect what Americans pay for everything from car fuel to chicken wings.
=====
CBOT Corn Review: Bounce From Losses On Bullish Acres Talk
Chicago Board of Trade corn futures ended higher Friday, rebounding from earlier session losses on bullish acreage outlooks for Monday'splantings report and supportive underlying fundamentals.
=====
Huge U.S shift away from corn to soy acres
Record-high soybean prices are expected to lure U.S. farmers to make a huge shift away from corn production in 2008 and if the current cold, soggy weather pattern persists in key corn states, corn plantings may be cut even more dramatically than analysts now expe
=====
Glo orders NFA to have corn sold in its outlets, supply watched
BEFORE the supply of corn grits runs out, President Arroyo ordered the Department of Agriculture (DA) to find out if local distributors have been hoarding it or if it is distributed unevenly.
=====
Corn farmers anxious to get back into fields
Recent rains and flooding have many Arkansas farmers cooling their heels. They would like to be preparing their land for planting corn, but weather-related problems have delayed tillage operations.
=====
South Africa Raises Corn Crop Estimate by 1.7 Percent
South Africa, the biggest corn producer in Africa, raised its corn crop forecast for this season by 1.7 percent.
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Wednesday, March 26, 2008
Corn Futures Will Continue to Rise because of Several Factors
Corn futures on the Chicago Board of Trade finished higher on Wednesday, with a number of factors continuing to contribute to its rise.
Future contracts for May increased to $5.52 1/4, up by 7 1/2 cents; July contracts finished at $5.65, and increase of 8 cents; December contracts ended at $5.68 1/2, an increase of 8 3/4 cents.
While speculators played some role in the increase, as consumer confidence reports and the dollar starting to drop again have brought them back to commodities, after their exodus last week.
Other drivers that should guarantee continuing price increases are the midwest corn fields which are being held back from being planted because of wet fields; and forecasts are it'll continue getting rain over the next week, further slowing the planting season - especially in the southeastern portion.
Overall consensus by analysts from a Dow Jones Newswires' survey are the number of acres planted in corn this year will fall by 6.2 million acres to 97.387 million. That's down from the 93.600 million acres planted in 2007.
Other bad weather news is the the northern half of the midwest could be hit with up to 2 inches of rain, which will cause them to delay corn planting, making the harvest even further off.
If this keeps on much longer, the price of corn will probably continue to go up, as there could be anticipated times of low supply.
Of course the ethanol issue continues to rear its ugly head as the battle for corn, acreage and planting other crops like wheat continues on, reeking havoc in American agriculture and the price of food.
Future contracts for May increased to $5.52 1/4, up by 7 1/2 cents; July contracts finished at $5.65, and increase of 8 cents; December contracts ended at $5.68 1/2, an increase of 8 3/4 cents.
While speculators played some role in the increase, as consumer confidence reports and the dollar starting to drop again have brought them back to commodities, after their exodus last week.
Other drivers that should guarantee continuing price increases are the midwest corn fields which are being held back from being planted because of wet fields; and forecasts are it'll continue getting rain over the next week, further slowing the planting season - especially in the southeastern portion.
Overall consensus by analysts from a Dow Jones Newswires' survey are the number of acres planted in corn this year will fall by 6.2 million acres to 97.387 million. That's down from the 93.600 million acres planted in 2007.
Other bad weather news is the the northern half of the midwest could be hit with up to 2 inches of rain, which will cause them to delay corn planting, making the harvest even further off.
If this keeps on much longer, the price of corn will probably continue to go up, as there could be anticipated times of low supply.
Of course the ethanol issue continues to rear its ugly head as the battle for corn, acreage and planting other crops like wheat continues on, reeking havoc in American agriculture and the price of food.
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