The USDA remain optimistic on the advance of next months official Prospective Planting report, with a view that the weather will have little impact on yields.
Last autumn, farmers overcame dry conditions affecting much of the country to harvest 10.78 billion bushels of corn and just more than 3 billion bushels of soybeans.
Corn prices are expected to fall by 33% to $4.80(€3.66) per bushel despite a 4% increase in ethanol usage, according to USDA. Limited exports and reductions in ethanol production led to the lower corn futures contracts, despite the short 2012 crop.
The agency’s researchers announced last week at the Outlook Forum that record corn production and major price declines are expected in the 2013-2014 period, including a total yield of 14.5 billion bushels.
Soybean production is expected to increase by 13% from 2012 levels alongside a 27% price drop to $10.50 (€8) a bushel from $14.30 (€11) last year.
A Deutsche Bank analyst predicts that corn plantings in 2013 will be flat versus one year ago, resulting in pressure on new corn crop futures even as soybean supplies should be plentiful.
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