Latest Crop Reports Show Growers Able to Meet Demand, NCGA Says (12-12-06)

Corn supplies held steady in the latest World Agriculture Supply and Demand report, released Monday by the U.S. Department of Agriculture (USDA). National Corn Growers Association (NCGA) President Ken McCauley, of White Cloud, Kan., said the report reflects confidence in U.S. corn production.

“The report confirms that corn supply is still at the levels predicted last month, and shows that corn growers are able to supply all markets,” says McCauley. “Prices are expected to be a little higher due to some perception of future demand. This report also shows that our foreign competitors are growing more corn and are planning on growing more corn. That’s important to keep in mind as we look to build more market opportunities worldwide. It highlights the importance of better trading relationships and market access.”

USDA projections for corn, sorghum and oats are all essentially unchanged in the latest report. However, predictions for global corn predictions are up, particularly in Argentina, Brazil, South Africa and the Ukraine. “It should show everyone we’re in a global economy,” McCauley says. “As prices go up it starts attracting other countries’ attention.” He adds that competition makes it imperative to gain more market access and additional uses for corn.

USDA will release its final report on the 2006 corn crop in January.