USDA Sees Higher Production

OMAHA (DTN) — USDA sees higher corn and soybean production with this year’s planted acres and yield forecast to rise in USDA’s initial Grains and Oilseeds Outlook released Friday.

Corn production is projected at 15.2 billion bushels (bb) for the 2021-22 crop and soybean production is projected at 4.5 bb. Higher demand forecasts for both crops will keep ending stocks relatively low, especially for soybeans.

USDA released the Grains and Oilseeds Outlook as part of the USDA Agricultural Outlook Forum, which continues Friday.

CORN

USDA projected 2021-22 crop year to lead to larger crop production, greater domestic use and exports, and slightly higher ending stocks.

The 2021-22 corn planting is projected 92 million acres (ma). With a yield projected at 179.5 bushels per acre (bpa), USDA forecasts the corn crop production at 15.2 bb. USDA cites the higher yield as based on weather-adjusted trend, assuming norming planting progress and summer growing-season weather.

All of that compares to the 2020-21 crop at 90.8 ma planted, a yield of 172 bpa and production at 14.18 bb.

Total corn use for the 2021-22 crop is also forecast to rise 3% as well on higher demand in both domestic use and continued strength in exports. Feed, seed and industrial use is projected up 4% to 6.6 bb. Corn used for ethanol also is expected to increase 5% based on expectations of higher motor gasoline consumption over the next year following the slowdown due to COVID-19. Feed and residual use for corn in 2021-22 will increase 200 million bushels (mb) to 5.9 bb.

Corn exports are expected to increase 50 mb to 2.7 bb, “reflecting expectations of global trade growth and continued robust demand from China.”

Progressive Farmer

Tags: corn, USDA, soybean, Production, Grains and Oilseeds Outlook