US Corn, World Grain Projections Lowered

Matt Hopkins Posted by Matt Hopkins|16 September 2008

In the September World Agricultural Supply and Demand Estimates report (WASDE), the USDA reduced its US corn production forecast for 2008 by 216 million bushels, down to 12.1 billion bushels with a forecast national average yield of 152.3 bushels per acre. It also lowered projections for ending stocks by 115 million bushels to 1,018 million bushels.

USDA 2008/09 projections were also lowered for global coarse grain production by 2.4 million tons as US and Argentina’s corn reductions and less Australian barley will offset higher corn production in China and Mexico, higher European barley and oats, and higher Canada coarse grains production. Argentina’s corn production was lowered 3.0 million tons due to more favorable returns for soybeans and continued uncertainty about government export policies while favorable weather raised Mexico’s corn production 1.0 million tons. China could expect a record corn crop as production estimates were raised 3.0 million tons, while Philippines corn crop projections were reduced by 0.8 million tons and EU-27 corn production reduced by 0.4 million tons.