NCGA Puts New Twist on Crop Report
USDA released its October crop projections Friday, increasing the size of the corn crop to 9.429 billion bushels, a 2% increase from the September report had forecast a crop of 9.238 billion. The National Corn Growers Association found the larger crop simply meant more reason to maintain and expand corn checkoff programs. Grain markets reacted negatively to the report with December corn contracts on the Chicago Board of Trade declining 4 3/4 cents, and November soybeans by 12 1/4 cents per bushel.
"Even though this increase in production estimates has dampened corn prices, U.S. corn consumption is forecast to outpace production," explained Paul Bertels, NCGA director of production and stewardship.
"The key to increasing the profitability of corn farming is to continue to increase the demand for corn. NCGA will continue to push for increased demand on numerous fronts during the current marketing year. These efforts include finding new uses for corn domestically like PLA (a new polymer developed to use corn for clothing and plastics), and the expansion of ethanol production. NCGA will also increase our ability to meet foreign demand through Mississippi River improvements and passage of the TPA (trade promotion authority)."
Average yields throughout the Corn Belt were increased in most states between the September and October reports. The average yields in Kentucky were increased by 10 bushels per acre. However, the most remarkable story is in Indiana. The average corn yields in Indiana are 160 bushels per acre, 13 bushels more then last year's record.
Other states posting yield increases were Wisconsin, six bushels; Colorado and Kansas, each five bushels; Ohio, four bushels, and Illinois and Iowa each by three bushels.
This report also showed concern for the corn crop in Minnesota and Michigan. Although Minnesota's average yields were increased one bushel, they are still 16 bushels per acre behind last year. Yield estimates in Michigan are running 32 bushels below last year's crop.