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Thursday, June 16, 2016

Low corn production in South America means U.S. exports are projected to be highest since 2009-10

The U.S. Department of Agriculture has increased projections for corn and soybeans, "thanks to lower production in South America and rising demand for U.S. commodities," Roy Leidahl reports for Iowa Farmer Today. "Brazil’s weather woes—plus lower production in Uruguay and China—helped boost U.S. exports," with USDA increasing corn export projections "by 100 million bushels for old-crop and 50 million for new-crop." Another boost is that forecasts indicate "wetter conditions that would favor crops in much of the Midwest."

The latest corn projections would be the highest overseas sales of the product since the 2009-10 season, Joel Karlin reports for DTN The Progressive Farmer. "The cumulative sales total of 148.7 million bushels as of the first week of June is actually below the five year average of 155.9 million for this time of year, and those sales are only 9.4 percent of the June. Foreign corn buyers like U.S. end-users are certainly aware that global supplies might not be as abundant as thought earlier in the spring but are notably resistant to procuring more supplies after an 80 cent rally has lifted values to their highest levels in a year and feed wheat becomes cheaper by the day." (DTN graphic)

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