On Friday, the United States Department of Agriculture released a series of reports detailing the state of commodity production in the U.S. last year and finalizing the 2012 crop year.
Illinois corn production ended up four bushels per acre higher than predicted in November at 105 bushels. This is a sharp decline from the 157 bushels per acre average Illinois enjoyed in 2010 and 2011. In total, USDA reports that Illinois produced 1,286,250 bushels of corn, down from 1,946,800 in 2011. All declines can be attributed to the drought conditions Illinois farmers experienced in 2012.
These reports have affected the corn market on Friday and today. Corn was up again 15 cents today and farmers will likely hold as much of their production as possible until they get the 2013 crop in the ground and see Mother Nature will again bless Illinois with rain.
Feed and residual use is projected 300 million bushels higher based on September-November disappearance as indicated by December 1 stocks and on higher expected beef, pork, and poultry production. Corn exports are projected 200 million bushels lower reflecting the slow pace of sales and shipments to date and increasing pressure from larger supplies and exports for South America. For now, Brazil is picking up some of America’s slack with ample corn and low prices.