Commodity Online
The US corn production is expected to witness huge leap this year with the projections forecasting a total corn production at 11.938 billion bushels, up from the government’s July estimate of 11.715 billion bushels.

The reason for this jump is the favorable crop weather which will be reflected in the government’s crop report.

According to market analysts, the US Department of Agriculture will project total corn production at 11.938 billion bushels.

Yields are estimated at 152.3 bushels per acre, up from 148.4 bushels per acre in the July report.

This year, the government has conducted additional surveying prior to the report to gauge the flood’s effects.

Analysts estimates for corn production range from 11.1 billion to 12.33 billion bushels. Yield estimates range from 149 bushels per acre to 155.4. Normal rains and moderate temperatures boosted crop conditions throughout the month of July.

Informa Economics, which had the highest projected yield and total production in the survey, noted in a report that Indiana, Illinois, Wisconsin, Iowa and South Dakota showed the greatest improvement.

The crop rated good to excellent in the USDA’s weekly crop progress reports has steadily climbed, which analysts said is rare for this time of year. Informa estimated harvested acreage at 78.9 million acres, 600,000 above the USDA’s June estimate, due to increases in Indiana, Illinois and Iowa.

Farm Futures, which conducted a survey, said the number of acres planted and lost to flooding remains a key variable this year. Farm Futures is projecting total production of 12.061 billion bushels.

The crop remains behind schedule, and could still run into problems with less daylight and potentially an early frost, analysts said.

Increased production will translate into higher ending stocks for the 2008-09 marketing year, analysts said. Analysts on average expect new-crop ending stocks of 991 million bushels, up from the government’s July estimate of 833 million bushels. The estimates from 15 analysts range from 704 million bushels to 1.235 billion bushels.

Analysts project 2007-08 ending stocks will be virtually unchanged at 1.599 billion bushels, up from 1.598 billion bushels in the government’s July report. Estimates range from 1.483 billion to 1.648 billion bushels.

Analysts expect the USDA to increase world supplies slightly, based mostly on a projected rise in Chinese production.