USDA announces record-setting corn crop
November 08, 2013 | 06:37 PM
The Agriculture Department said today that the U.S. corn crop will be a record-setter — 30 percent bigger than last year’s drought-shortened harvest — that results in the largest ending stocks since 2006, but lower than market expectations, Reuters reported today.
Corn and soybean futures rose slightly, The Wall Street Journal reported. That might give a boost to critics of corn-based ethanol who want either the Environmental Protection Agency or Congress to lower its usage in the nation's gasoline supply, although corn prices are 40 percent lower than a year ago.
Pro-ethanol groups said there is plenty of corn.
Growth Energy CEO Tom Buis stated, “It is clear from this report that the food versus fuel debate over the U.S. renewable fuel policy can be put to bed. Our farmers have once again proven we can produce abundant quantities of high quality food, feed, fiber and renewable fuel.”
Renewable Fuels Association President Bob Dinneen said, “This historic crop underscores the urgency of maintaining demand. Now, more than ever, the Renewable Fuel Standard must stand as is. No cuts, no reductions. This country will be swimming in excess corn if the RFS requirements are cut.”
“The ending-stocks ratio for corn is projected at 14.6 percent, which would be the largest stock-use ratio since 2005,” American Farm Bureau Federation economist Todd Davis said in a news release.
“This increase in stocks will likely cause prices to decline from a marketing-average price of $6.89 per bushel for 2012-2013 to a projected $4.50 per bushel for 2013-2014,” he said.
The 2013 corn yield is estimated at 160.4 bushels per acre, up about 5 bushels from the last report in September.
Corn and soybean futures rose slightly, The Wall Street Journal reported. That might give a boost to critics of corn-based ethanol who want either the Environmental Protection Agency or Congress to lower its usage in the nation's gasoline supply, although corn prices are 40 percent lower than a year ago.
Pro-ethanol groups said there is plenty of corn.
Growth Energy CEO Tom Buis stated, “It is clear from this report that the food versus fuel debate over the U.S. renewable fuel policy can be put to bed. Our farmers have once again proven we can produce abundant quantities of high quality food, feed, fiber and renewable fuel.”
Renewable Fuels Association President Bob Dinneen said, “This historic crop underscores the urgency of maintaining demand. Now, more than ever, the Renewable Fuel Standard must stand as is. No cuts, no reductions. This country will be swimming in excess corn if the RFS requirements are cut.”
“The ending-stocks ratio for corn is projected at 14.6 percent, which would be the largest stock-use ratio since 2005,” American Farm Bureau Federation economist Todd Davis said in a news release.
“This increase in stocks will likely cause prices to decline from a marketing-average price of $6.89 per bushel for 2012-2013 to a projected $4.50 per bushel for 2013-2014,” he said.
The 2013 corn yield is estimated at 160.4 bushels per acre, up about 5 bushels from the last report in September.
