U.S. corn supplies remain unchanged while favorable weather and strong market demand are expected to increase production in South America, according to the latest U.S. Department of Agriculture (USDA) report. National Corn Growers Association (NCGA) President Ken McCauley sees the reaction as normal.
“We see that the world is responding to market demand,” he said. “Just looking at U.S. production isn’t the whole story.”
The latest USDA report shows corn production for Argentina and Brazil increasing by about 9 percent. Mexico is expected to import more corn, while Canada corn imports should drop sharply, due to increased use of wheat for livestock feed.
Overall, USDA estimates world corn production will increase by about 5.2 million metric tonnes (204.7 million bushels) over January’s estimates.
“Production and supply will continue to go up as long as the market calls for it,” McCauley commented. “Let basic economics prevail and the right things will happen.”
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